Overview
Title
An Act To prohibit unfair and deceptive advertising of prices for hotel rooms and other places of short-term lodging, and for other purposes.
ELI5 AI
H. R. 1479 wants to make sure hotel and short stay prices are easy to understand by asking hotels to show all costs upfront, so people aren’t surprised by extra fees or taxes.
Summary AI
H. R. 1479, known as the "Hotel Fees Transparency Act of 2025," aims to make sure all prices for hotel rooms and other short-term lodgings are shown clearly to customers. It prohibits misleading ads that hide extra fees or taxes, so people know the total cost upfront. This bill allows both federal and state officials to enforce these rules and ensures they don’t conflict with state laws regarding contracts, fraud, or data privacy. Importantly, if hotels or rental services provide wrong price information to third-party sellers, those sellers can defend themselves if they acted in good faith and corrected errors promptly.
Published
Keywords AI
Sources
Bill Statistics
Size
Language
Complexity
AnalysisAI
General Summary of the Bill
The "Hotel Fees Transparency Act of 2025" is a legislative proposal aimed at ensuring transparency in the advertising and pricing of hotel rooms and other short-term lodging. Under this act, businesses must disclose the total cost of lodging services, including various fees and taxes, upfront in their marketing and advertising materials. It assigns the Federal Trade Commission (FTC) the authority to enforce these provisions and allows state attorneys general to take legal action if their residents' interests are adversely affected.
Summary of Significant Issues
One major concern with the bill lies in the requirement for the total services price to be displayed "clearly, conspicuously, and prominently." These terms are somewhat subjective and could lead to challenges in interpretation and enforcement. Another significant issue is the limitation on state-level consumer protection actions, as the bill restricts states from initiating actions if the FTC has already begun legal proceedings. Furthermore, the preemption clause could undermine state laws that offer stronger consumer protections.
The definitions of key terms such as "covered entity," "service fee," and "optional product or service" might also present ambiguities that complicate enforcement. Specifically, determining what constitutes an "optional product or service" could vary significantly based on consumer perspective, potentially leading to disputes.
Impact on the Public
For the general public, the bill aims to provide clearer information when booking accommodations by mandating upfront disclosure of all applicable costs. This transparency could prevent the frustration and financial strain of unexpected fees, fostering more informed consumer decisions. However, the potential lack of clarity in regulatory language might lead to inconsistent application and enforcement, thereby affecting consumers unevenly across different states and entities.
Impact on Stakeholders
For consumers, especially frequent travelers and those booking online, the bill could enhance confidence and trust in lodging advertisements, enabling better financial planning. However, disparities in interpretation and execution could limit these benefits, particularly in areas with traditionally strong state-level consumer protection laws.
Businesses offering lodging services might face increased regulatory compliance costs and the challenge of adjusting their pricing strategies. While it offers an opportunity to build trust through transparency, smaller businesses or platforms serving niche markets could struggle more with compliance, potentially impacting their operational viability.
State governments could find their autonomy in protecting consumers slightly curtailed due to the preemption clause, which inhibits the enactment of stricter local laws. This aspect of the bill may be viewed as inhibiting states' ability to tailor consumer protection to their specific economic and demographic conditions. In conclusion, while the bill promises increased transparency for consumers, several nuances in its provisions will require careful navigation by lawmakers, businesses, and enforcement agencies to ensure its effective implementation.
Issues
The requirement in Section 2(a)(1)(A) for the total services price to be displayed 'clearly, conspicuously, and prominently' could lead to differing interpretations and enforcement challenges due to the subjective nature of these terms.
Section 2(b)(2)(D) could limit state-level consumer protection actions by preventing a State attorney general from initiating actions if the Federal Trade Commission (FTC) has already instituted a civil action, potentially weakening state-level consumer protection measures.
The preemption clause in Section 2(c)(1) might undermine state rights to enforce stricter consumer protection laws, which could negatively impact states with stronger consumer protection regulations.
The definition of 'covered entity' in Section 2 includes entities under FTC jurisdiction, which could be ambiguous without further specification, potentially complicating enforcement for those not explicitly mentioned.
By allowing indemnification provisions between covered entities in Section 2(a)(3), accountability could become complicated if there are breaches of pricing transparency, potentially diluting consumer protection.
The distinction of an 'optional product or service' in Section 2(d)(7) is subjective and might vary by consumer perspective, potentially leading to misunderstandings or disputes about what must be disclosed or included in advertised prices.
Implementation challenges might arise from the inclusion of both 'hotel' and 'short-term rental' within the same regulatory framework, given the different regulatory landscapes these entities typically operate under, as described in Section 2(d).
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The first section of this act states that it may be officially called the "Hotel Fees Transparency Act of 2025."
2. Prohibition on unfair and deceptive advertising of hotel rooms and other short-term rental prices Read Opens in new tab
Summary AI
This section makes it illegal for businesses to advertise hotel rooms or short-term rentals in a misleading way by not showing the total price upfront, including all fees and taxes. The enforcement of this law will be managed by the Federal Trade Commission (FTC), and state attorneys general can also take legal action if the interests of their residents are affected. The law restricts states from enacting their own rules on this issue unless they align with the federal requirements and provides a timeframe for when these changes will take effect.