H.R.1479 - Hotel Fees Transparency Act of 2025 (119th Congress)
Summary
H.R.1479, the Hotel Fees Transparency Act of 2025, aims to prohibit unfair and deceptive advertising of prices for hotel rooms and other short-term lodging. It mandates that covered entities display the total services price, including all mandatory fees, clearly and prominently in any advertisement or offering. The bill empowers the Federal Trade Commission (FTC) and state attorneys general to enforce these provisions, ensuring transparency in pricing for consumers.
Expected Effects
The Act will likely lead to greater transparency in the pricing of hotel rooms and short-term rentals. Consumers will be able to see the full cost upfront, reducing the likelihood of hidden fees and unexpected charges. This could also foster more competition among hotels and short-term rentals, as consumers can more easily compare prices.
Potential Benefits
- Increased Transparency: Consumers will have a clearer understanding of the total cost of hotel rooms and short-term rentals.
- Reduced Deceptive Practices: The Act prohibits hidden fees, preventing businesses from advertising misleadingly low prices.
- Enhanced Consumer Choice: With transparent pricing, consumers can make more informed decisions about where to stay.
- Fair Competition: Hotels and short-term rentals will compete on the basis of the total price, rather than just the base rate.
- Empowerment of States: State attorneys general are empowered to enforce the Act, providing an additional layer of consumer protection.
Most Benefited Areas:
Potential Disadvantages
- Potential for Higher Advertised Prices: Hotels and short-term rentals may advertise higher prices upfront to account for mandatory fees.
- Compliance Costs: Businesses may incur costs to update their advertising and pricing systems to comply with the Act.
- Possible Litigation: The Act's definitions and enforcement provisions could lead to litigation, creating uncertainty for businesses.
- Preemption of State Laws: The Act preempts state laws that conflict with its provisions, potentially limiting state flexibility in regulating hotel fees.
- Affirmative Defense for Intermediaries: The inclusion of an affirmative defense for intermediaries could create loopholes in enforcement.
Constitutional Alignment
The Act appears to align with the Commerce Clause (Article I, Section 8, Clause 3) of the U.S. Constitution, which grants Congress the power to regulate interstate commerce. By regulating the advertising of hotel room prices in interstate commerce, the Act falls within the scope of this power. The enforcement mechanisms, involving the FTC and state attorneys general, are consistent with established principles of federalism and do not appear to infringe on states' rights beyond what is necessary to achieve the Act's objectives.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).