S.314 - Hotel Fees Transparency Act of 2025 (119th Congress)
Summary
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 conspicuously in any advertisement or offer. The bill empowers the Federal Trade Commission (FTC) and state attorneys general to enforce these provisions.
Expected Effects
This act will likely lead to increased 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. It could also foster more competition among hotels and short-term rentals, as consumers can more easily compare prices.
Potential Benefits
- Increased price transparency for consumers.
- Reduced instances of hidden or unexpected fees.
- Easier comparison of prices across different hotels and short-term rentals.
- Potential for increased competition among lodging providers.
- Empowers consumers to make more informed purchasing decisions.
Most Benefited Areas:
Potential Disadvantages
- Potential for hotels and short-term rentals to increase base prices to compensate for including mandatory fees in the advertised price.
- Possible compliance costs for covered entities to update their advertising and pricing systems.
- May not cover all types of fees, as it specifically excludes taxes and government-imposed assessments.
- Could lead to initial confusion as businesses adjust to the new requirements.
- The preemption clause may limit the ability of states to enact stricter regulations.
Constitutional Alignment
The Act appears to align with the Commerce Clause (Article I, Section 8, Clause 3) of the U.S. Constitution, as it regulates interstate commerce by addressing advertising practices of hotels and short-term rentals. The enforcement provisions, granting authority to the FTC and state attorneys general, are consistent with the powers delegated to the federal government to regulate commerce. The Act does not appear to infringe upon any individual liberties or rights protected by the Bill of Rights.
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).