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. The bill requires covered entities to clearly and conspicuously display the total services price, including all mandatory fees, at the initial point of display and throughout the purchasing process. It also empowers the Federal Trade Commission (FTC) and state attorneys general to enforce these provisions.
Expected Effects
The act will likely lead to greater transparency in hotel and short-term rental pricing, enabling consumers to make more informed decisions. This could result in increased competition among lodging providers, potentially driving down overall costs for consumers. It also establishes clear enforcement mechanisms, ensuring compliance and deterring deceptive practices.
Potential Benefits
- Increased price transparency for consumers, allowing them to compare lodging options more effectively.
- Reduced instances of hidden or surprise fees, leading to a more honest and fair marketplace.
- Enhanced competition among hotels and short-term rentals, potentially resulting in lower prices.
- Clearer understanding of the total cost of lodging, aiding in better budgeting and financial planning for travelers.
- Empowered consumers with the ability to make informed purchasing decisions, fostering trust in the hospitality industry.
Potential Disadvantages
- Potential for increased compliance costs for hotels and short-term rentals, which may be passed on to consumers in some form.
- Possible legal challenges or ambiguities in interpreting the definition of "service fee" and "optional product or service".
- Risk of businesses finding loopholes to circumvent the law, such as reclassifying mandatory fees as optional services.
- Preemption of state laws could limit the ability of states to enact stricter consumer protection measures.
- Potential for third-party online sellers to face challenges in obtaining and displaying accurate price information, despite the affirmative defense provision.
Constitutional Alignment
The bill aligns 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 addressing deceptive advertising practices in the hotel and short-term rental industry, the act aims to ensure fair competition and protect consumers in interstate transactions. The enforcement provisions, granting authority to the FTC and state attorneys general, are consistent with established legal frameworks for regulating commerce.
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).