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 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, ensuring transparency in pricing for consumers.
Expected Effects
The act will likely lead to greater transparency in hotel and short-term rental pricing, allowing consumers to make more informed decisions. It could also lead to increased competition among hotels and short-term rentals, as they are forced to be more upfront about their total costs. This may result in lower overall costs for consumers, or at least a clearer understanding of what they are paying for.
Potential Benefits
- Increased price transparency for consumers.
- Empowerment of consumers to make informed choices.
- Potential for increased competition among lodging providers.
- Enhanced enforcement mechanisms through the FTC and state attorneys general.
- Reduction of deceptive advertising practices.
Potential Disadvantages
- Potential for increased compliance costs for hotels and short-term rentals.
- Possible preemption of state laws that offer greater consumer protection.
- Potential for loopholes in the definition of 'service fee'.
- The 450-day delay before the Act takes effect could allow deceptive practices to continue in the interim.
- The affirmative defense for intermediaries could shield some bad actors.
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 mechanisms provided to the FTC are consistent with the powers delegated to Congress to regulate commerce. The Act does not appear to infringe upon any individual liberties or rights protected by the Constitution.
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).