Overview

Title

To prohibit unfair and deceptive advertising of prices for hotel rooms and other places of short-term lodging, and for other purposes.

ELI5 AI

The Hotel Fees Transparency Act of 2025 wants hotels and places you can stay to show all costs clearly when you book, so people don't get surprised by extra fees later. It lets special helpers make sure this rule is followed to keep things fair for everyone.

Summary AI

S. 314, titled the "Hotel Fees Transparency Act of 2025," aims to stop misleading advertising of hotel and short-term rental prices. The bill makes it illegal for these businesses to show prices that don't obviously include all costs, like required service fees, during the booking process. It gives the Federal Trade Commission authority to enforce this rule, while also allowing state attorneys general to take action against violators. The bill includes specific definitions and timelines for when it comes into effect, providing a clear framework to protect consumers from hidden costs.

Published

2025-01-29
Congress: 119
Session: 1
Chamber: SENATE
Status: Introduced in Senate
Date: 2025-01-29
Package ID: BILLS-119s314is

Keywords AI

hotel fees transparency act unfair advertising deceptive advertising hotel pricing federal trade commission state attorneys general consumer protection fee disclosure covered entity short-term rental pricing

Sources

Bill Statistics

Size

Sections:
2
Words:
2,751
Pages:
14
Sentences:
41

Language

Nouns: 833
Verbs: 214
Adjectives: 183
Adverbs: 19
Numbers: 50
Entities: 114

Complexity

Average Token Length:
4.14
Average Sentence Length:
67.10
Token Entropy:
5.18
Readability (ARI):
35.00

AnalysisAI

General Summary of the Bill

The proposed legislation, titled the "Hotel Fees Transparency Act of 2025," is introduced to address the challenges consumers face with misleading pricing when booking hotel rooms and other forms of short-term lodging. The bill, introduced in the U.S. Senate, mandates clear and transparent advertising of prices. It requires covered entities, which include hotels, short-term rentals, third-party sellers, and intermediaries, to clearly display the total price of their services. This total must include any applicable service fees upfront and throughout the purchasing process. The bill outlines enforcement mechanisms involving the Federal Trade Commission (FTC) and state attorneys general while providing an effective date 450 days after enactment for compliance.

Summary of Significant Issues

There are several notable concerns with the bill:

  1. Ambiguity in Coverage: The definition of a "person" under the term "covered entity" is unclear. This could lead to enforcement challenges and ambiguities about who is required to comply with these new regulations.

  2. Total Services Price Definition: The bill defines the "total services price" to exclude taxes, fees, and optional services—elements consumers typically consider when assessing the overall cost. This exclusion could lead to confusion and misinterpretation among consumers, undermining the bill's transparency goal.

  3. Enforcement Mechanism Complications: The bill allows both the FTC and state attorneys general to enforce its mandates. This dual enforcement could result in overlapping jurisdiction, potential redundancies, and conflicts between state and federal actions.

  4. Preemption Clause Impact: The preemption clause might inadvertently nullify state-level consumer protections, especially those related to fee disclosures. This could limit states' abilities to enforce stricter consumer protection laws.

  5. Implementation Timeline Concerns: Covered entities, particularly smaller businesses, may struggle to meet the 450-day compliance deadline. The timeline may not be sufficient for necessary adjustments and investments in systems required to comply with the bill's requirements.

Potential Impact on the Public

Broadly, the bill could significantly enhance consumer protection by ensuring transparency in lodging prices. Consumers would benefit from seeing the total cost of their stay upfront, reducing instances of unexpected charges or hidden fees. This transparency could foster greater trust in online and offline transaction processes related to hotel and lodging services.

However, consumers could still face confusion if "total services price" definitions are not comprehensive, as taxes and certain fees are excluded from the advertised prices. This may necessitate a more nuanced understanding from consumers regarding what costs are included or excluded.

Impact on Specific Stakeholders

Hotels and Short-Term Rentals: These entities will need to adapt their pricing systems to align with the transparency requirements. While larger organizations may have the means to implement these changes promptly, smaller establishments might face financial strains due to the requisite system updates and potential compliance costs.

Third-Party Sellers and Intermediaries: These stakeholders are provided a legal defense if they rely on inaccurate information provided by hotels and rentals, as long as they show good faith efforts to maintain accuracy. This could shield them from liability, but they must remain diligent in correcting errors once identified.

Federal and State Governments: The bill empowers both federal and state authorities in its enforcement, which could bolster consumer protection but may also create jurisdictional challenges. Clarifying these roles and fostering collaboration between state and federal entities will be crucial in mitigating conflicts.

Overall, while the bill aims to provide clearer and more honest pricing information to consumers, its successful implementation will depend on addressing these significant issues and ensuring stakeholders are sufficiently equipped and informed to meet its requirements.

Issues

  • The document does not clearly define who specifically qualifies as a 'person' under the term 'covered entity,' which could lead to ambiguity in enforcement related to Section 2(a).

  • The term 'total services price' in Section 2(a) could be confusing because it excludes taxes, fees, and optional services, which are often considered part of the total cost from a consumer's perspective.

  • There is no clarity on the process for determining whether information provided by hotels or short-term rentals is 'inaccurate' or not, per Section 2(b)(3). This could complicate the use of the affirmative defense by intermediaries or third-party online sellers.

  • The enforcement mechanism in Section 2(b) allows both the Federal Trade Commission and state attorneys general to engage in enforcement actions. This could lead to redundancy or conflicts between state and federal actions.

  • The preemption clause in Section 2(c) could inadvertently nullify state laws designed to protect consumers, particularly with the language regarding fee disclosure.

  • The effective date timeline in Section 2(e) may not provide covered entities enough time to adjust their systems to comply with the new requirements, particularly if they are complex and require significant investment.

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

The section prohibits unfair and misleading advertising practices for hotel rooms and short-term rental prices by requiring clear and prominent display of total service prices, including fees and taxes, throughout the purchasing process. It grants enforcement powers to the Federal Trade Commission and state attorneys general, provides certain legal defenses for intermediaries, and sets specific requirements and exceptions for states regarding advertising laws.