[House Report 119-71]
[From the U.S. Government Publishing Office]
119th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 119-71
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HOTEL FEES TRANSPARENCY ACT OF 2025
_______
April 24, 2025.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Guthrie, from the Committee on Energy and Commerce, submitted the
following
R E P O R T
[To accompany H.R. 1479]
The Committee on Energy and Commerce, to whom was referred
the bill (H.R. 1479) 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........................... 3
New Budget Authority, Entitlement Authority, and Tax Expenditures 3
Congressional Budget Office Estimate............................. 3
Federal Mandates Statement....................................... 3
Statement of General Performance Goals and Objectives............ 3
Duplication of Federal Programs.................................. 3
Related Committee and Subcommittee Hearings...................... 3
Committee Cost Estimate.......................................... 4
Earmark, Limited Tax Benefits, and Limited Tariff Benefits....... 4
Advisory Committee Statement..................................... 4
Applicability to Legislative Branch.............................. 4
Section-by-Section Analysis of the Legislation................... 4
Changes in Existing Law Made by the Bill, as Reported............ 6
PURPOSE AND SUMMARY
H.R. 1479, the Hotel Fees Transparency Act of 2025 was
introduced by Representative Kim on February 21, 2025, and
referred to the Committee on Energy and Commerce. H.R. 1479
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\
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\1\Sam Kemmis, How not to get soaked by ``drip pricing'' by
airlines and hotels when booking your vacation. CBS News Moneywatch.
(June 2022), https://www.cbsnews.com/news/travel-fees-how-to-avoid/.
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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\
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\2\Stacey Vanek Smith, Fees added to bills are costing consumers
billions. Now, regulators are cracking down, NPR Transcript (July
2023), https://www.npr.org/2023/07/25/1190081421/fees-added-to-bills-
are-costing-consumers-billions-now-regulators-are-cracking-d.
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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. 1479 applies to ``direct offerings,
third party distribution, or metasearch referrals.'' Thus, to
be in compliance with H.R. 1479, 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. 1479 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 The Hotel Fees Transparency Act. 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 April 8, 2025, the full Committee on Energy and Commerce
met in open markup session and ordered H.R. 1479, without
amendment, favorably reported to the House by a voice vote.
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. There were no record votes taken in
connection with ordering H.R. 1479 reported.
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. 1479 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, at the time this
report was filed, the cost estimate prepared by the Director of
the Congressional Budget Office pursuant to section 402 of the
Congressional Budget Act of 1974 was not available.
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 for short term lodging, inclusive of
additional fees, at the time of display through direct
offerings, third-party distribution, or metasearch referrals 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. 1479 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 the Hotel Fees
Transparency Act:
On September 27, 2023, the Subcommittee on
Innovation, Data, and Commerce held a hearing on draft
legislation that would become the Hotel Fees
Transparency Act. 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. At the time this report was
filed, the estimate was not available.
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. 1479 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 ``Hotel
Fees Transparency Act of 2025''.
Section 2. Prohibition on unfair and deceptive advertising of hotel
rooms and other short-term rental prices
This section prohibits a covered entity from displaying,
advertising, marketing, or offering in interstate commerce, a
price for covered services that does not clearly and
prominently (A) display the total services price; (B) disclose
the total services price at the time it is first displayed to
the individual and anytime throughout the purchasing process;
and (C) disclose any tax or fee imposed by the government prior
to the final purchase.
Subsection (a)(2) provides that a covered entity is not
prohibited from displaying individual components of the total
price or additional details of other items not required by this
Act, provided that such displays are less prominent than the
required total services price.
Subsection (a)(3) provides that nothing in this section
shall be construed to prohibit any covered entity from entering
into a contract with another covered entity that contains an
indemnification provision regarding price or fee information
that is shared between the covered entities that are parties to
the contract.
Subsection (b)(1) provides that a violation of subsection
(a) will be treated as a violation of a rule defining an unfair
or deceptive act or practice under the Federal Trade Commission
Act (15 U.S.C. 57a(a)(1)(B)).
Subsection (b)(2) provides for State enforcement of
subsection (a) through State attorneys general. Attorneys
general who wish to bring a case must inform the Commission
prior to bringing civil action. If they are unable to notify
the Commission prior to the action, they must notify
immediately upon bringing the civil action. The Commission may
intervene in any civil action brought by the attorney general
of a State and file petitions for appeal. Nothing in this
section may be construed to prevent State attorneys general
from exercising other powers conferred upon them by the laws of
a State to conduct investigations, administer oaths or
affirmations, or compel the attendance of witnesses or the
production of evidence. Where a civil action has been
instituted by or on behalf of the Commission, no attorney
general may institute an action against any defendant in the
complaint. Any action brought under subparagraph (a) may be
brought in a United States district court or another competent
court of jurisdiction. Actions brought under subparagraph (a)
may be served in any district where the defendant is an
inhabitant, is found, or transacts business; or the venue is
proper under section 1391 of title 28, United States Code.
Authorized State officers other than attorneys general may
bring a civil action under subparagraph (a), subject to the
same requirements under this paragraph. Nothing in this
paragraph may be construed to prohibit an authorized State
official from initiating or continuing State court proceedings
for violations of a State's civil or criminal law.
Subsection (b)(3) provides that in any action pursuant to
this Act, an intermediary or third-party online sellers may
assert an affirmative defense if such entity (A) established
procedures to receive up-to-date price information from hotels
or short-term rentals; (B) relied on good faith on information
provided to the entity by a hotel or short-term rental and such
information was inaccurate at the time it was provided; and (C)
took prompt action to correct any false or inaccurate
information after receiving notice that such information was
inaccurate.
Subsection (c) prohibits States (and their political
subdivisions) from enforcing any provision having the force and
effect of law that prohibits a covered entity from advertising
or displaying or affects the manner in which a covered entity
advertises or displays a price that does not include each
mandatory fee. This section may not be construed to preempt any
State law relating to contracts or torts, or any State law that
related to fraud.
Subsection (d) defines key terms in this Act. ``Base
service price'' means the price to obtain the covered service
of the hotel or short-term rental, not including service fees
or taxes. ``Commission'' means the Federal Trade Commission.
``Covered entity'' means a person or partnership that the
Commission has jurisdiction, including hotels, third-party
online sellers, or an intermediary. ``Covered services'' means
the temporary provision of a room, building, or other lodging
facility and does not include the provision of meeting rooms,
banquet services, or catering services. ``Hotel'' means an
establishment that provides a covered service and promotes such
service. ``Intermediary'' means an entity that operates as
either business-facing or consumer-facing, or both and displays
a price for covered entities or a price comparison service for
covered services. ``Optional product or service'' means a
product or service that an individual does not need to purchase
for use of covered services. ``Service fee'' means a charge
from a covered entity necessary for covered services and does
not include any government taxes or fees or any optional fees.
``Short-term rental'' means a property that provides covered
services to the general public for a fee, for a period shorter
than 30 consecutive days, and promotes the service. ``State''
means each of the 50 States, the District of Columbia, and any
territory of the United States. ``Third-party online seller''
means any person other than a hotel or short-term rental that
sells covered services with respect to a hotel in a transaction
on the internet. ``Total services price'' means the total cost
of covered services, including the base service price and any
service fees, and does not include any government taxes or tees
or optional fees.
Subsection (e) sets the effective date of this Act as 450
days following enactment.
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
This legislation does not amend any existing Federal
statute.