Hotel Fees Transparency Act of 2024

This bill prohibits unfair and deceptive advertising of prices for hotel rooms and other short-term lodging by requiring that the total price, including all mandatory fees, be clearly displayed upfront. It also allows states to enforce the law and sets a compliance date 450 days after enactment.

Sec. 2, Prohibition on unfair and deceptive advertising of hotel rooms and other short-term rental prices: It is unlawful for a covered entity to display, advertise, market, or offer a price for covered services without clearly, conspicuously, and prominently showing the total services price (including all mandatory service fees but excluding government taxes/fees and optional charges) at first display and throughout the purchasing process, and disclosing any government-imposed taxes, fees, or assessments before final purchase. Individual price components may be shown less prominently. Indemnification contracts between covered entities are allowed.

Enforcement by the Federal Trade Commission: A violation is treated as an unfair or deceptive act or practice under the FTC Act, and the FTC enforces it with its usual powers, penalties, and immunities.

Enforcement by states: A state attorney general may sue in federal court on behalf of residents if a violation threatens their interests, after notifying the FTC (with exceptions). The FTC may intervene. If the FTC sues first, the state cannot sue the same defendant for the same violation during that case.

Rebuttable presumption of compliance: In any enforcement action, an intermediary or third-party online seller gets a rebuttable presumption of compliance if it relied in good faith on inaccurate information from the hotel or short-term rental and promptly corrected it after notice.

Preemption: States and localities cannot maintain laws that prohibit a covered entity from advertising a price that does not include each mandatory fee, but this does not preempt contract/tort laws or laws on fraud or data breach notification.

Definitions: Key terms are defined, including "base services price" (the room price excluding service fees, government taxes/fees, and optional charges), "covered entity" (hotels, short-term rentals, third-party online sellers, and intermediaries under FTC jurisdiction), "covered services" (temporary lodging), "hotel," "intermediary," "optional product or service," "service fee" (mandatory charge to obtain lodging, excluding government taxes/fees and optional charges), "short-term rental" (property rented for under 30 days), "third-party online seller," and "total services price" (base price plus service fees, excluding government taxes/fees and optional charges).

Effective date: The prohibition takes effect 450 days after enactment and applies to advertisements, displays, marketing, and offers made on or after that date.