H.R. 1479: Hotel Fees Transparency Act of 2025

This bill, known as the Hotel Fees Transparency Act of 2025, aims to ensure that consumers are provided with clear and transparent pricing information when booking hotel rooms or other short-term lodging services.

Key Provisions of the Bill

• Prohibition on Misleading Advertising: The bill makes it illegal for hotels and short-term rentals (referred to as "covered entities") to display, advertise, or market their prices without clearly showing the total price. This includes any fees or taxes associated with the service.
• Price Disclosure Requirements: When advertising or marketing prices, covered entities must:
  • Display the total service price prominently.
  • Disclose the total service price at the first point of contact with consumers.
  • Inform consumers of any additional government taxes, fees, or assessments before the final purchase.
• Components of Pricing: The law allows for the display of individual components of the total price (such as service fees) but specifies that these should not be more prominent than the total price itself.
• Enforcement: The Federal Trade Commission (FTC) is designated as the enforcement authority for violations of this bill, treating such violations as unfair or deceptive acts.
• State Enforcement: State attorneys general can take legal action on behalf of residents if they believe that unfair practices are affecting consumers.
• Affirmative Defense for Intermediaries: Online platforms selling these services can defend themselves if they can prove they received accurate price information and acted quickly to correct any errors once they were notified.
• Effective Date: If enacted, the requirements will take effect 450 days after the law is signed.
• Preemption of State Laws: States will not be allowed to have laws that conflict with this legislation concerning pricing and fee disclosure for covered services.

Definitions

The bill provides specific definitions to clarify terms used, including:

• Covered Entity: Includes businesses such as hotels, short-term rentals, and third-party sellers.
• Total Services Price: The complete cost that includes the base price and service fees but excludes government taxes and optional service charges.

Relevant Companies

• EXPE (Expedia Group, Inc.): As a major online travel agency, this legislation may affect how Expedia presents its hotel pricing information.
• BKNG (Booking Holdings Inc.): This company operates various travel fare aggregators and may need to adapt their pricing advertising strategies to comply with the new requirements.
• MELI (MercadoLibre, Inc.): As an online commerce platform, they may face implications related to service fees and price presentations for services associated with short-term rental provisions.