Relating To Consumer Protection.
If enacted, HB321 will require providers of transient accommodations to display prices that include all fees at the time of advertisement, whether online or otherwise. Additionally, any taxes or fees that are presented as a percentage during the booking process must also be shown as a dollar amount. Such changes are expected to empower consumers by ensuring they have complete information about the total cost of accommodations before making purchases, ultimately preventing misleading practices.
House Bill 321 aims to enhance consumer protection concerning transient accommodations by addressing the prevalence of hidden fees, commonly referred to as junk fees, that providers often impose on consumers. The bill seeks to prohibit charging any fees on transient accommodations or resort time share interests that were not previously disclosed to consumers at the time of purchase. This move is designed to uphold transparency in pricing for consumers who are often misled by additional charges revealed only after transactions begin.
HB321 aligns with national trends toward reducing deceptive pricing practices in the accommodation sector, with similar legislative efforts observed in other states like California and at the federal level through initiatives like the Junk Fee Prevention Act. The bill reflects a broader commitment to fostering fairer business practices and protecting consumers from hidden fees, thereby enhancing the overall integrity of the tourism and hospitality industries in Hawaii.
The motivations for this legislation are rooted in a growing recognition of how junk fees can mislead consumers, which was highlighted by a 2022 White House report estimating that Americans incurred over $8 billion annually in such fees for lodging and airfare. The underlying practice criticized by the bill is known as drip pricing, where additional fees are presented to consumers only after they initiate a transaction, which often manipulates their purchasing decisions.