II 119THCONGRESS 1 STSESSION S. 314 To prohibit unfair and deceptive advertising of prices for hotel rooms and other places of short-term lodging, and for other purposes. IN THE SENATE OF THE UNITED STATES JANUARY29, 2025 Ms. K LOBUCHAR(for herself, Mr. MORAN, Ms. CORTEZMASTO, and Mrs. C APITO) introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation A BILL To prohibit unfair and deceptive advertising of prices for hotel rooms and other places of short-term lodging, and for other purposes. Be it enacted by the Senate and House of Representa-1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Hotel Fees Trans-4 parency Act of 2025’’. 5 SEC. 2. PROHIBITION ON UNFAIR AND DECEPTIVE ADVER-6 TISING OF HOTEL ROOMS AND OTHER 7 SHORT-TERM RENTAL PRICES. 8 (a) P ROHIBITION.— 9 VerDate Sep 11 2014 22:15 Feb 03, 2025 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S314.IS S314 ssavage on LAPJG3WLY3PROD with BILLS 2 •S 314 IS (1) IN GENERAL.—It shall be unlawful for a 1 covered entity to display, advertise, market, or offer 2 in interstate commerce, including through direct of-3 ferings, third-party distribution, or metasearch refer-4 rals, a price for covered services that does not clear-5 ly, conspicuously, and prominently— 6 (A) display the total services price, if a 7 price is displayed, in any advertisement, mar-8 keting, or price list wherever the covered serv-9 ices are displayed, advertised, marketed, or of-10 fered for sale; 11 (B) disclose to any individual who seeks to 12 purchase covered services the total services 13 price at the time the covered services are first 14 displayed to the individual and anytime there-15 after throughout the covered services pur-16 chasing process; and 17 (C) disclose, prior to the final purchase, 18 any tax, fee, or assessment imposed by any gov-19 ernment entity, quasi-government entity, or 20 government-created special district or program 21 on the sale of covered services. 22 (2) I NDIVIDUAL COMPONENTS .—Provided that 23 such displays are less prominent than the total serv-24 VerDate Sep 11 2014 22:15 Feb 03, 2025 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S314.IS S314 ssavage on LAPJG3WLY3PROD with BILLS 3 •S 314 IS ice price required in paragraph (1), nothing in this 1 Act shall be construed to prohibit the display of— 2 (A) individual components of the total 3 price; or 4 (B) details of other items not required by 5 paragraph (1). 6 (3) I NDEMNIFICATION PROVISIONS .—Nothing 7 in this section shall be construed to prohibit any cov-8 ered entity from entering into a contract with any 9 other covered entity that contains an indemnification 10 provision with respect to price or fee information 11 disclosed, exchanged, or shared between the covered 12 entities that are parties to the contract. 13 (b) E NFORCEMENT.— 14 (1) E NFORCEMENT BY THE COMMISSION .— 15 (A) U NFAIR OR DECEPTIVE ACTS OR PRAC -16 TICES.—A violation of subsection (a) shall be 17 treated as a violation of a rule defining an un-18 fair or deceptive act or practice prescribed 19 under section 18(a)(1)(B) of the Federal Trade 20 Commission Act (15 U.S.C. 57a(a)(1)(B)). 21 (B) P OWERS OF THE COMMISSION .— 22 (i) I N GENERAL.—The Commission 23 shall enforce this section in the same man-24 ner, by the same means, and with the 25 VerDate Sep 11 2014 22:15 Feb 03, 2025 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S314.IS S314 ssavage on LAPJG3WLY3PROD with BILLS 4 •S 314 IS same jurisdiction, powers, and duties as 1 though all applicable terms and provisions 2 of the Federal Trade Commission Act (15 3 U.S.C. 41 et seq.) were incorporated into 4 and made a part of this Act. 5 (ii) P RIVILEGES AND IMMUNITIES .— 6 Any person who violates this section shall 7 be subject to the penalties and entitled to 8 the privileges and immunities provided in 9 the Federal Trade Commission Act (15 10 U.S.C. 41 et seq.). 11 (iii) A UTHORITY PRESERVED .—Noth-12 ing in this section shall be construed to 13 limit the authority of the Commission 14 under any other provision of law. 15 (2) E NFORCEMENT BY STATES .— 16 (A) I N GENERAL.—If the attorney general 17 of a State has reason to believe that an interest 18 of the residents of the State has been or is 19 being threatened or adversely affected by a 20 practice that violates subsection (a), the attor-21 ney general of the State may, as parens patriae, 22 bring a civil action on behalf of the residents of 23 the State in an appropriate district court of the 24 United States to obtain appropriate relief. 25 VerDate Sep 11 2014 22:15 Feb 03, 2025 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S314.IS S314 ssavage on LAPJG3WLY3PROD with BILLS 5 •S 314 IS (B) RIGHTS OF THE COMMISSION .— 1 (i) N OTICE TO THE COMMISSION .— 2 (I) I N GENERAL.—Except as pro-3 vided in subclause (III), the attorney 4 general of a State, before initiating a 5 civil action under subparagraph (A) 6 shall notify the Commission in writing 7 that the attorney general intends to 8 bring such civil action. 9 (II) C ONTENTS.—The notifica-10 tion required by subclause (I) shall in-11 clude a copy of the complaint to be 12 filed to initiate the civil action. 13 (III) E XCEPTION.—If it is not 14 feasible for the attorney general of a 15 State to provide the notification re-16 quired by subclause (I) before initi-17 ating a civil action under subpara-18 graph (A), the attorney general shall 19 notify the Commission immediately 20 upon instituting the civil action. 21 (ii) I NTERVENTION BY THE COMMIS -22 SION.—The Commission may— 23 VerDate Sep 11 2014 22:15 Feb 03, 2025 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S314.IS S314 ssavage on LAPJG3WLY3PROD with BILLS 6 •S 314 IS (I) intervene in any civil action 1 brought by the attorney general of a 2 State under subparagraph (A); and 3 (II) upon intervening— 4 (aa) be heard on all matters 5 arising in the civil action; and 6 (bb) file petitions for appeal. 7 (C) I NVESTIGATORY POWERS .—Nothing in 8 this paragraph may be construed to prevent the 9 attorney general of a State from exercising the 10 powers conferred on the attorney general by the 11 laws of the State to conduct investigations, to 12 administer oaths or affirmations, or to compel 13 the attendance of witnesses or the production of 14 documentary or other evidence. 15 (D) A CTION BY THE COMMISSION .—When-16 ever a civil action has been instituted by or on 17 behalf of the Commission for violation of sub-18 section (a), no attorney general of a State may, 19 during the pendency of that action, institute an 20 action under subparagraph (A) against any de-21 fendant named in the complaint in that action 22 for a violation of subsection (a) alleged in such 23 complaint. 24 (E) V ENUE; SERVICE OF PROCESS.— 25 VerDate Sep 11 2014 22:15 Feb 03, 2025 Jkt 059200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S314.IS S314 ssavage on LAPJG3WLY3PROD with BILLS 7 •S 314 IS (i) VENUE.—Any action brought 1 under subparagraph (A) may be brought 2 in— 3 (I) the district court of the 4 United States that meets applicable 5 requirements relating to venue under 6 section 1391 of title 28, United States 7 Code; or 8 (II) another court of competent 9 jurisdiction. 10 (ii) S ERVICE OF PROCESS.—In an ac-11 tion brought under subparagraph (A), 12 process may be served in any district in 13 which— 14 (I) the defendant is an inhab-15 itant, may be found, or transacts 16 business; or 17 (II) venue is proper under section 18 1391 of title 28, United States Code. 19 (F) A CTIONS BY OTHER STATE OFFI -20 CIALS.— 21 (i) I N GENERAL.—In addition to civil 22 actions brought by an attorney general 23 under subparagraph (A), any other officer 24 of a State who is authorized by the State 25 VerDate Sep 11 2014 22:15 Feb 03, 2025 Jkt 059200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S314.IS S314 ssavage on LAPJG3WLY3PROD with BILLS 8 •S 314 IS to do so may bring a civil action under 1 subparagraph (A), subject to the same re-2 quirements and limitations that apply 3 under this paragraph to civil actions 4 brought by attorneys general. 5 (ii) S AVINGS PROVISION.—Nothing in 6 this paragraph may be construed to pro-7 hibit an authorized official of a State from 8 initiating or continuing any proceeding in 9 a court of the State for a violation of any 10 civil or criminal law of the State. 11 (3) A FFIRMATIVE DEFENSE .—In any action 12 pursuant to paragraph (1) or (2), an intermediary 13 or third-party online seller may assert an affirmative 14 defense if such intermediary or third-party online 15 seller— 16 (A) established procedures to receive up-to- 17 date price information from hotels or short- 18 term rentals, or agents acting on behalf of a 19 hotel or short-term rental; 20 (B) relied in good faith on information 21 provided to the intermediary or third-party on-22 line seller by a hotel or short-term rental, or 23 agent acting on behalf of such hotel or short- 24 term rental, and such information was inac-25 VerDate Sep 11 2014 22:15 Feb 03, 2025 Jkt 059200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S314.IS S314 ssavage on LAPJG3WLY3PROD with BILLS 9 •S 314 IS curate at the time it was provided to the inter-1 mediary or third-party online seller; and 2 (C) took prompt action to remove or cor-3 rect any false or inaccurate information about 4 the total services price after receiving notice 5 that such information was false or inaccurate. 6 (c) P REEMPTION.— 7 (1) I N GENERAL.—A State, or political subdivi-8 sion of a State, may not maintain, enforce, pre-9 scribe, or continue in effect any law, rule, regulation, 10 requirement, standard, or other provision having the 11 force and effect of law of the State, or political sub-12 division of the State, that prohibits a covered entity 13 from advertising, displaying, marketing, or otherwise 14 offering, or otherwise affects the manner in which a 15 covered entity may advertise, display, market, or 16 otherwise offer, for sale in interstate commerce, in-17 cluding through a direct offering, third-party dis-18 tribution, or metasearch referral, a price of a res-19 ervation for a covered service, and that requires fee 20 disclosure, unless the law requires the total services 21 price to include each service fee, as defined in sub-22 section (d)(8), and in accordance with subsection 23 (a)(1). 24 VerDate Sep 11 2014 22:15 Feb 03, 2025 Jkt 059200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S314.IS S314 ssavage on LAPJG3WLY3PROD with BILLS 10 •S 314 IS (2) RULE OF CONSTRUCTION .—This section 1 may not be construed to— 2 (A) preempt any law of a State or political 3 subdivision of a State relating to contracts or 4 torts; or 5 (B) preempt any law of a State or political 6 subdivision of a State to the extent that such 7 law relates to an act of fraud, unauthorized ac-8 cess to personal information, or notification of 9 unauthorized access to personal information. 10 (d) D EFINITIONS.—In this Act: 11 (1) B ASE SERVICES PRICE.—The term ‘‘base 12 services price’’— 13 (A) means, with respect to the covered 14 services provided by a hotel or short-term rent-15 al, the price in order to obtain the covered serv-16 ices of the hotel or short-term rental; and 17 (B) does not include— 18 (i) any service fee; 19 (ii) any taxes or fees imposed by a 20 government or quasi-government entity; 21 (iii) assessment fees of a government- 22 created special district or program; or 23 (iv) any charges or fees for an op-24 tional product or service associated with 25 VerDate Sep 11 2014 23:16 Feb 03, 2025 Jkt 059200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S314.IS S314 ssavage on LAPJG3WLY3PROD with BILLS 11 •S 314 IS the covered services that may be selected 1 by a purchaser of covered services. 2 (2) C OMMISSION.—The term ‘‘Commission’’ 3 means the Federal Trade Commission. 4 (3) C OVERED ENTITY.—The term ‘‘covered en-5 tity’’ means a person, partnership, or corporation 6 with respect to whom the Commission has jurisdic-7 tion under section 5(a)(2) of the Federal Trade 8 Commission Act (15 U.S.C. 45(a)(2)), including— 9 (A) a hotel or short-term rental; 10 (B) a third-party online seller; or 11 (C) an intermediary. 12 (4) C OVERED SERVICES.—The term ‘‘covered 13 services’’— 14 (A) means the temporary provision of a 15 room, building, or other lodging facility; and 16 (B) does not include the provision of a 17 meeting room, banquet services, or catering 18 services. 19 (5) H OTEL.—The term ‘‘hotel’’ means an es-20 tablishment that is— 21 (A) primarily engaged in providing a cov-22 ered service to the general public; and 23 (B) promoted, advertised, or marketed in 24 interstate commerce or for which such estab-25 VerDate Sep 11 2014 22:15 Feb 03, 2025 Jkt 059200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S314.IS S314 ssavage on LAPJG3WLY3PROD with BILLS 12 •S 314 IS lishment’s services are sold in interstate com-1 merce. 2 (6) I NTERMEDIARY.—The term ‘‘intermediary’’ 3 means an entity that operates either as a business- 4 to-business platform, consumer-facing platform, or 5 both, that displays, including through direct offer-6 ings, third-party distribution, or metasearch referral, 7 a price for covered services or price comparison tools 8 for consumers seeking covered services. 9 (7) O PTIONAL PRODUCT OR SERVICE .—The 10 term ‘‘optional product or service’’ means a product 11 or service that an individual does not need to pur-12 chase to use or obtain covered services 13 (8) S ERVICE FEE.—The term ‘‘service fee’’— 14 (A) means a charge imposed by a covered 15 entity that must be paid in order to obtain cov-16 ered services; and 17 (B) does not include— 18 (i) any taxes or fees imposed by a 19 government or quasi-government entity; 20 (ii) any assessment fees of a govern-21 ment-created special district or program; 22 or 23 (iii) any charges or fees for an op-24 tional product or service associated with 25 VerDate Sep 11 2014 22:15 Feb 03, 2025 Jkt 059200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S314.IS S314 ssavage on LAPJG3WLY3PROD with BILLS 13 •S 314 IS the covered services that may be selected 1 by a purchaser of covered services. 2 (9) S HORT-TERM RENTAL.—The term ‘‘short- 3 term rental’’ means a property, including a single- 4 family dwelling or a unit in a condominium, coopera-5 tive, or time-share, that provides covered services 6 (either with respect to the entire property or a part 7 of the property) to the general public— 8 (A) in exchange for a fee; 9 (B) for periods shorter than 30 consecutive 10 days; and 11 (C) is promoted, advertised, or marketed in 12 interstate commerce or for which such prop-13 erty’s services are sold in interstate commerce. 14 (10) S TATE.—The term ‘‘State’’ means each of 15 the 50 States, the District of Columbia, and any ter-16 ritory or possession of the United States. 17 (11) T HIRD-PARTY ONLINE SELLER .—The term 18 ‘‘third-party online seller’’ means any person other 19 than a hotel or short-term rental that sells covered 20 services or offers for sale covered services with re-21 spect to a hotel or short-term rental in a transaction 22 facilitated on the internet. 23 (12) T OTAL SERVICES PRICE.—The term ‘‘total 24 services’’— 25 VerDate Sep 11 2014 22:15 Feb 03, 2025 Jkt 059200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\S314.IS S314 ssavage on LAPJG3WLY3PROD with BILLS 14 •S 314 IS (A) means, with respect to covered serv-1 ices, the total cost of the covered services, in-2 cluding the base services price and any service 3 fees; and 4 (B) does not include— 5 (i) any taxes or fees imposed by a 6 government or quasi-government entity; 7 (ii) any assessment fees of a govern-8 ment-created special district or program; 9 or 10 (iii) any charges or fees for an op-11 tional product or service associated with 12 the covered services that may be selected 13 by a purchaser of covered services. 14 (e) E FFECTIVEDATE.—The prohibition under sub-15 section (a) shall take effect 450 days after the date of 16 the enactment of this Act and shall apply to advertise-17 ments, displays, marketing, and offers of covered services 18 of a covered entity made on or after such date. 19 Æ VerDate Sep 11 2014 22:15 Feb 03, 2025 Jkt 059200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6301 E:\BILLS\S314.IS S314 ssavage on LAPJG3WLY3PROD with BILLS