[House Report 118-500]
[From the U.S. Government Publishing Office]


118th Congress }                                          { Report 
                        HOUSE OF REPRESENTATIVES
  2d Session   }                                          { 118-500

======================================================================
 
        NO HIDDEN FEES ON EXTRA EXPENSES FOR STAYS ACT OF 2023

                                _______
                                

  May 10, 2024.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

Mrs. Rodgers of Washington, from the Committee on Energy and Commerce, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 6543]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 6543) to prohibit unfair and deceptive 
advertising of prices for hotel rooms and other places of 
short-term lodging, and for other purposes, having considered 
the same, reports favorably thereon without amendment and 
recommends that the bill do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     1
Background and Need for Legislation..............................     2
Committee Action.................................................     2
Committee Votes..................................................     3
Oversight Findings and Recommendations...........................     5
New Budget Authority, Entitlement Authority, and Tax Expenditures     5
Congressional Budget Office Estimate.............................     5
Federal Mandates Statement.......................................    10
Statement of General Performance Goals and Objectives............    10
Duplication of Federal Programs..................................    11
Related Committee and Subcommittee Hearings......................    11
Committee Cost Estimate..........................................    11
Earmark, Limited Tax Benefits, and Limited Tariff Benefits.......    11
Advisory Committee Statement.....................................    11
Applicability to Legislative Branch..............................    11
Section-by-Section Analysis of the Legislation...................    11
Changes in Existing Law Made by the Bill, as Reported............    12

                          PURPOSE AND SUMMARY

    H.R. 6543, the ``No Hidden Fees Act of 2023'' was 
introduced by Representative Kim on December 5, 2023, and 
referred to the Committee on Energy and Commerce. H.R. 6543 
prohibits a covered provider of a place of short-term lodging 
from advertising, displaying, marketing, or otherwise offering 
for sale a price of a reservation for a place of short-term 
lodging that does not include each mandatory fee. Provisions 
would include short-term lodging advertised, displayed, 
marketed, or otherwise offered for sale through direct 
offerings, third party distribution, and metasearch referrals.

                  BACKGROUND AND NEED FOR LEGISLATION

    Hidden fees, such as resort fees charged at the time of 
check out and often not disclosed at the time of booking, harm 
consumers, especially those on tight budgets. Such fees are a 
way of increasing revenue by hiding from consumers the real 
price they will pay to stay at a hotel or other place of short-
term lodging.\1\
---------------------------------------------------------------------------
    \1\Robbie Whelan and Anne Steele, It's Getting Too Expensive to 
Have Fun, Wall Street Journal (Oct. 2023), https://www.wsj.com/economy/
consumers/its-getting-too-expensive-to-have-fun-a59e9df8.
---------------------------------------------------------------------------
    Hidden fees make it impossible for consumers to compare 
prices and make informed purchasing decisions. Such fees can be 
substantial, and they are often levied after the hotel stay has 
ended. One expert, Jeff Galak, a professor of marketing at 
Carnegie Mellon University's Tepper School of Business, 
explained that ``[b]y the time the fee is tacked on, it's too 
late . . . . It's either actually too late, like `I'm standing 
at the hotel check-in desk, I don't have a choice anymore.' Or 
it's apparently too late.''\2\
---------------------------------------------------------------------------
    \2\Stacey Vanek Smith, What my $30 Hamburger Reveals About Fees and 
how Companies use them to Jack Up Prices, NPR (July 2023), https://
www.npr.org/2023/07/27/1189665392/fees-
inflation-white-house-service-hidden.
---------------------------------------------------------------------------
    Prices for hotel rooms and other places of short-term 
lodging are advertised on the providers' own websites and are 
also typically marketed across a wide variety of internet 
platforms and mobile applications. To ensure that consumers 
receive accurate information about any fees that will be 
charged in connection with a stay at a covered provider, 
regardless of the platform a consumer uses to compare prices or 
make reservations, H.R. 6453 applies to ``direct offerings, 
third party distribution, or metasearch referrals.'' Thus, to 
be in compliance with H.R. 6453, providers must make available 
all mandatory fee information to any internet website or other 
third party that the provider has allowed to advertise, market, 
display or otherwise offer the short-term lodging for sale. By 
ensuring consumers have information about all mandatory fees, 
H.R. 6543 will enhance the price transparency of the hotel and 
lodging industry for the benefit of consumers.

                            COMMITTEE ACTION

    On September 27, 2023, the Subcommittee on Innovation, 
Data, and Commerce held a hearing on draft legislation that 
would become H.R. 6543. The title of the hearing was 
``Proposals to Enhance Product Safety and Transparency for 
Americans.'' The Subcommittee received testimony from:
           Kathleen Callahan, Owner, Xpertech Auto 
        Repair;
           Scott Benavidez, Chairman, Automotive 
        Service Association;
           Steven Michael Gentine, Counsel, Arnold & 
        Porter, LLP;
           John Breyault, Vice President of Public 
        Policy, Telecommunications and Fraud, National 
        Consumers League; and,
           David Touhey, Principal, Connett Consulting, 
        appearing on behalf of International Association of 
        Venue Managers.
    On November 2, 2023, the Subcommittee on Innovation, Data, 
and Commerce met in open markup session and forwarded the 
legislation, without amendment, to the full Committee by voice 
vote.
    On December 1, 2023, H.R. 6543 was introduced by Rep. Kim 
Young (CA-40) and referred to the Committee on Energy and 
Commerce.
    On December 5 and 6, 2023, the full Committee on Energy and 
Commerce met in open markup session and ordered H.R. 6543, 
without amendment, favorably reported to the House by a record 
vote of 43 yeas and 0 nays.

                            COMMITTEE VOTES

    Clause 3(b) of rule XIII requires the Committee to list the 
recorded votes on the motion to report legislation and 
amendments thereto. The following reflects the record votes 
taken during the Committee consideration:


                 OVERSIGHT FINDINGS AND RECOMMENDATIONS

    Pursuant to clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII, the Committee held a hearing and made findings that 
are reflected in this report.

              NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY,
                          AND TAX EXPENDITURES

    Pursuant to clause 3(c)(2) of rule XIII, the Committee 
finds that H.R. 6543 would result in no new or increased budget 
authority, entitlement authority, or tax expenditures or 
revenues.

                  CONGRESSIONAL BUDGET OFFICE ESTIMATE

    Pursuant to clause 3(c)(3) of rule XIII, the following is 
the cost estimate provided by the Congressional Budget Office 
pursuant to section 402 of the Congressional Budget Act of 
1974.


    Summary of legislation: On December 6, 2023, the House 
Committee on Energy and Commerce ordered reported 41 bills. 
This document provides estimates for 7 of those bills.
    The bills would require the Federal Trade Commission (FTC) 
to enforce new prohibitions and requirements or would direct 
the Department of Commerce to study various issues and report 
to the Congress.
    Estimated Federal cost: The bills' costs fall within budget 
function 370 (commerce and housing credit).
    Basis of estimate: For this estimate, CBO assumes that the 
bills will be enacted near the middle of fiscal year 2024. The 
estimated costs do not include any interaction effects among 
the bills. If all seven bills were combined and enacted as a 
single piece of legislation, the estimated costs would be 
different from the sum of the separate estimates, although CBO 
expects that any difference would be small.
    CBO estimates that implementing each of the seven bills 
would cost between $1 million and $4 million over the 2024-2029 
period; that spending would be subject to the availability of 
appropriated funds.
    Four bills--H.R. 2964, H.R. 3950, H.R. 6125, and H.R. 
6543--would each increase revenues by an insignificant amount. 
Entities that fail to meet each of those bills' new 
requirements could face civil penalties, which are recorded in 
the federal budget as revenues. To some extent, collection of 
any civil fines would depend on the amount of appropriations 
provided by future appropriation acts to pay for enforcement. 
In addition, whether the FTC would pursue civil penalties or 
some other remedy for violations is unclear. In any event, CBO 
expects that companies would generally comply with the new 
requirements and that any additional revenues collected over 
the 2024-2034 period would be insignificant for each bill.
    H.R. 2964, WIPPES Act: The bill would require manufacturers 
and suppliers of disposable wipes to clearly mark their 
products with a ``do not flush'' label and symbol. The FTC 
would enforce those requirements.
    Based on the cost of similar provisions, CBO estimates that 
implementing H.R. 2964 would cost the FTC $4 million to issue 
guidance and to monitor and enforce violations. In addition, 
CBO estimates that enacting the bill could increase civil 
penalty collections, which are recorded in the federal budget 
as revenues, by an insignificant amount.
    H.R. 3950, TICKET Act: The bill would require companies 
that issue tickets or that sell tickets on the secondary market 
to clearly display the total price of any ticket, including 
itemizing any fees not included in the base ticket price. That 
requirement would apply to live events at venues with an 
attendance capacity of 200 people or more. The FTC would 
enforce those requirements.
    Based on the cost of similar provisions, CBO estimates that 
implementing H.R. 3950 would cost the FTC $4 million to issue 
guidance and to monitor and enforce violations. In addition, 
CBO estimates that enacting the bill could increase civil 
penalty collections, which are recorded in the federal budget 
as revenues, by an insignificant amount.
    H.R. 5146, Advancing Gig Economy Act: The bill would 
require the Department of Commerce to study and report to the 
Congress within two years of enactment on how the gig economy 
affects U.S. businesses.
    Based on the cost of similar studies, CBO estimates that 
implementing H.R. 5146 would cost $2 million over two years for 
the work of four employees, at an annual cost of about $220,000 
each, along with purchases of data and survey contracts.
    H.R. 5390, Critical Infrastructure Manufacturing 
Feasibility Act: The bill would require the Department of 
Commerce to study and report to the Congress within one year of 
enactment on the feasibility of manufacturing in the United 
States products in critical infrastructure sectors that now are 
imported because of supply chain constraints.
    Based on the cost of similar studies, CBO estimates that 
implementing H.R. 5390 would cost $1 million for one year for 
the work of four employees, at a cost of about $220,000 each, 
along with purchases of data and survey contracts.
    H.R. 5398, Advancing Tech Startups Act: The bill would 
require the Department of Commerce to study and report to the 
Congress within two years of enactment on how technology 
startup companies affect the U.S. economy.
    Based on the cost of similar studies, CBO estimates that 
implementing H.R. 5398 would cost $2 million over two years for 
the work of four employees, at an annual cost of about $220,000 
each, along with purchases of data and survey contracts.
    H.R. 6125, Online Dating Safety Act of 2023: The bill would 
require providers of online dating services to notify a user if 
they are contacted by a member whose account was suspended or 
terminated because of fraudulent activity. The FTC would 
enforce those requirements.
    Based on the cost of similar provisions, CBO estimates that 
implementing H.R. 6125 would cost the FTC $4 million to issue 
guidance and to monitor and enforce violations. In addition, 
CBO estimates that enacting the bill could increase civil 
penalty collections, which are recorded in the federal budget 
as revenues, by an insignificant amount.
    H.R. 6543, No Hidden FEES Act of 2023: The bill would 
require providers of short-term lodging and websites that 
advertise or offer such lodging to display each mandatory fee 
required to complete a booking. The FTC would enforce those 
requirements.
    Based on the cost of similar provisions, CBO estimates that 
implementing H.R. 6543 would cost the FTC $4 million to issue 
guidance and to monitor and enforce violations. In addition, 
CBO estimates that enacting the bill could increase civil 
penalty collections, which are recorded in the federal budget 
as revenues, by an insignificant amount.
    Pay-As-You-Go considerations: CBO estimates that enacting 
H.R. 2964, H.R. 3950, H.R. 6125, and H.R. 6543 would each 
increase revenues by less than $500,000 over the 2024-2034 
period; therefore, pay-as-you-go procedures apply to those 
bills.
    Increase in long-term net direct spending and deficits: 
None of the bills would increase net direct spending or on-
budget deficits in any of the four consecutive 10-year periods 
beginning in 2035.
    Mandates: The following bills--H.R. 2964, H.R. 3950, H.R. 
6125, and H.R. 6543--would impose mandates as defined in the 
Unfunded Mandates Reform Act (UMRA).
    H.R. 2964, WIPPES Act: The bill would impose 
intergovernmental and private-sector mandates, but CBO 
estimates that the costs to comply with those mandates would 
not exceed the thresholds established in UMRA ($100 million and 
$200 million in 2024, respectively, adjusted annually for 
inflation).
    H.R. 2964 would preempt some state and local laws governing 
the labeling of certain disposable wipes. Although the 
preemptions would limit the application of state and local 
laws, they would impose no duty on state or local governments 
that would result in significant spending or loss of revenues.
    The bill would require manufacturers of certain disposable 
wipes to clearly mark their products with a ``do not flush'' 
label and symbol. Because manufacturers already are complying 
with similar laws enacted in California, Illinois, and several 
other states, CBO estimates that the cost for manufacturers to 
comply with the mandate would be small.
    H.R. 3950, TICKET Act: The bill would impose private-sector 
mandates as defined in UMRA on ticket sellers and resellers by 
requiring certain changes, including new refund policies, to 
the ticketing process. CBO estimates that the aggregate cost to 
comply with the mandates would be above the threshold 
established in UMRA for private-sector mandates ($200 million 
in 2024, adjusted annually for inflation).
    Under the bill, if an event is canceled, ticket sellers and 
resellers would be required to refund the full ticket price, 
including taxes and fees, to purchasers. If an event is 
postponed, sellers and resellers would be required to offer 
customers either a full refund or a replacement ticket, if 
available, subject to the customer's preference. Sellers also 
would be required to disclose this refund policy. The bill 
allows for exceptions to this policy in cases where the 
cancellation or postponement is beyond the control of the 
ticket issuer, such as natural disasters. Based on discussions 
with industry sources, a substantial share of sellers and 
resellers already provide full refunds for canceled events but 
few offer refunds for postponed events. Considerable 
uncertainty surrounds the ways that federal regulations might 
define what is within the control of a ticket issuer in the 
event of a cancellation or postponement or what might 
constitute comparable replacement events. Given the large size 
of the industry and the amount of revenue generated by ticketed 
events, CBO estimates that the cost of the mandate would exceed 
the threshold for private-sector mandates.
    H.R. 3950 also would require ticket sellers and resellers 
to make certain up-front disclosures to consumers. They would 
need to disclose the total ticket prices, including taxes and 
fees. Those disclosures would occur when the ticket is first 
displayed to the consumer and in any advertisements or 
marketing. The bill also would require sellers and resellers to 
provide purchasers with an itemized list of the base price and 
all fees. Information from the industry indicates that most 
ticket sellers have already begun to provide the total cost to 
consumers in advance; thus, CBO expects that the additional 
requirements in the bill would have small costs for ticket 
sellers and resellers.
    The bill also would require ticket resellers to disclose to 
consumers that they are resellers before any purchase is 
complete. Sellers and resellers would be prohibited from 
advertising or selling any ticket that the seller does not 
actually or constructively possess. In certain instances, 
sellers also would be prohibited from revealing to consumers 
and using the names of venues, teams, artists, and events in 
their online domain names. CBO expects that those disclosures 
and prohibitions would impose minimal costs on the sellers.
    The bill contains no intergovernmental mandates as defined 
in UMRA.
    H.R. 6125, Online Dating Safety Act of 2023: The bill would 
impose intergovernmental and private-sector mandates, but CBO 
estimates that the costs to comply with those mandates would 
not exceed the thresholds established in UMRA ($100 million and 
$200 million in 2024, respectively, adjusted annually for 
inflation).
    The bill would preempt state laws governing fraud 
notifications issued by online dating services. Although the 
preemptions would limit the application of state and local 
laws, they would impose no duty on state or local governments 
that would result in significant spending or loss of revenues.
    H.R. 6125 would require providers of online dating services 
to send a fraud notification to consumers who receive a message 
from any member who has been banned by the service. Because 
some states already require those fraud notifications, most 
dating services have implemented the policy regardless of the 
consumer's location. Therefore, CBO expects that the cost to 
comply with the mandate would be small.
    H.R. 6543, No Hidden FEES Act of 2023: The bill would 
impose intergovernmental and private-sector mandates, but CBO 
estimates that the costs to comply with those mandates would 
not exceed the thresholds established in UMRA ($100 million and 
$200 million in 2024, respectively, adjusted annually for 
inflation).
    The bill would preempt state and local laws governing the 
display of prices for short-term lodging. Although the 
preemptions would limit the application of state and local 
laws, they would impose no duty on state or local governments 
that would result in significant spending or loss of revenues.
    H.R. 6543 would prohibit providers, online booking 
websites, and advertisers of short-term lodging from displaying 
prices that do not include all mandatory fees. Information from 
industry sources and the FTC indicates that several lodging 
providers already comply with provisions in the bill, and CBO 
expects the cost for other entities to comply would be small 
because they already possess the fee information required to be 
displayed.
    Previous CBO estimate: On October 25, 2023, CBO transmitted 
a cost estimate for S. 1303, the TICKET Act, as reported by the 
Senate Committee on Commerce, Science, and Transportation on 
September 12, 2023. Under H.R. 3950, regulated companies would 
be required to fulfill requirements that are additional to 
those specified in S. 1303; for example, if an event is 
canceled or postponed, a ticket seller would need to provide a 
full refund or replacement ticket. In addition, H.R. 3950 would 
require the FTC to report to the Congress on its enforcement of 
the Better Online Ticket Sales Act of 2016. CBO's estimated 
federal costs for both bills are the same. Because of the 
additional refund requirements on ticket sellers and resellers 
in H.R. 3950, CBO has determined that the cost of the private-
sector mandates is above the threshold.
    Estimate prepared by: Federal Costs: David Hughes, 
Mandates: Rachel Austin and Grace Watson.
    Estimate reviewed by: Justin Humphrey, Chief, Finance, 
Housing, and Education Cost Estimates Unit; Kathleen 
FitzGerald, Chief, Public and Private Mandates Unit; H. Samuel 
Papenfuss, Deputy Director of Budget Analysis.
    Estimate approved by: Phillip L. Swagel, Director, 
Congressional Budget Office.

                       FEDERAL MANDATES STATEMENT

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

         STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

    Pursuant to clause 3(c)(4) of rule XIII, the general 
performance goal or objective of this legislation is to require 
the display of total cost, inclusive of additional fees, at the 
time of display in business to business and consumer to 
business transactions.

                    DUPLICATION OF FEDERAL PROGRAMS

    Pursuant to clause 3(c)(5) of rule XIII, no provision of 
H.R. 6543 is known to be duplicative of another Federal 
program, including any program that was included in a report to 
Congress pursuant to section 21 of Public Law 111-139 or the 
most recent Catalog of Federal Domestic Assistance.

              RELATED COMMITTEE AND SUBCOMMITTEE HEARINGS

    Pursuant to clause 3(c)(6) of rule XIII, the following 
related hearing was used to develop or consider H.R. 6543:
           On September 27, 2023, the Subcommittee on 
        Innovation, Data, and Commerce held a hearing on draft 
        legislation that would become H.R. 6543. The title of 
        the hearing was ``Proposals to Enhance Product Safety 
        and Transparency for Americans.'' The Subcommittee 
        received testimony from:
                   Kathleen Callahan, Owner, 
                Xpertech Auto Repair;
                   Scott Benavidez, Chairman, 
                Automotive Service Association;
                   Steven Michael Gentine, Counsel, 
                Arnold & Porter, LLP;
                   John Breyault, Vice President of 
                Public Policy, Telecommunications and Fraud, 
                National Consumers League; and,
                   David Touhey, Principal, Connett 
                Consulting, appearing on behalf of 
                International Association of Venue Managers.

                        COMMITTEE COST ESTIMATE

    Pursuant to clause 3(d)(1) of rule XIII, the Committee 
adopts as its own the cost estimate prepared by the Director of 
the Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act of 1974

       EARMARK, LIMITED TAX BENEFITS, AND LIMITED TARIFF BENEFITS

    Pursuant to clause 9(e), 9(f), and 9(g) of rule XXI, the 
Committee finds that H.R. 6543 contains no earmarks, limited 
tax benefits, or limited tariff benefits.

                      ADVISORY COMMITTEE STATEMENT

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  APPLICABILITY TO LEGISLATIVE BRANCH

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title

    Section 1 provides that the Act maybe cited as the ``No 
Hidden Fees on Extra Expenses for Stays Act of 2023'' or the 
``No Hidden FEES Act of 2023''.

Section 2. Prohibition on unfair and deceptive advertising of hotel 
        room and other short-term lodging prices

    Section 2 requires covered providers to not advertise, 
display, market, or otherwise offer for sale a price of a 
reservation for a place of short-term lodging that does not 
include each mandatory fee.

Section 3. Enforcement

    Section 3 requires the Federal Trade Commission to treat a 
violation of the Act as a violation of a rule defining an 
unfair or deceptive act or practice under Section 18(a)(1)(B) 
of the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)). 
Section 3 also allows State Attorneys General to enforce the 
Act.

Section 4. One national standard

    Section 4 preempts state and local laws related to 
requirements on covered providers in relation to advertising, 
displaying, marketing, or otherwise offering a place of short-
term lodging for sale.

Section 5. Definitions

    Section 5 contains relevant definitions for the Act.

Section 6. Application to prior bookings

    Section 6 explains that the fee disclosure requirements in 
Section 2(a) can only be enforced in relation to reservations 
made on or after the effective date of the Act.

Section 7. Effective date

    Section 7 states that the effective date is 1 year after 
the date of enactment of the Act.

         CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    This legislation does not amend any existing Federal 
statute.

                                  [all]