Junk Fees Law Added to Year-End Funding Bill
Skift Take
Key Points
- The Hotel Fees Transparency Act of 2024 aims to prevent deceptive advertising by requiring total price disclosure for hotel stays.
- The Federal Trade Commission issued a rule banning junk fees, affecting travel companies and highlighting the push for federal standards.
- The inclusion of the junk fees law in the year-end funding bill is intended to create a unified national standard for fee transparency.
Summary
The Hotel Fees Transparency Act of 2024, included in a year-end funding bill, seeks to protect consumers by prohibiting unfair advertising of hotel and rental prices, mandating full price disclosure. This legislative move aligns with the Federal Trade Commission's rule against junk fees, pushing for a unified national standard over a patchwork of state laws. The continuing resolution, which includes these provisions, aims to prevent a government shutdown and ensure operations continue until March 14, pending approval.
Congress struck a deal Tuesday to include legislation that would protect consumers from hidden lodging fees in a year-end stopgap funding bill.
The Hotel Fees Transparency Act of 2024, which was introduced by Senators Amy Klobuchar, Democrat from Minnesota, and Jerry Moran, Republican from Kansas, would prohibit “unfair and deceptive advertising of hotel rooms and other short-term rental prices.” It would require companies to display the total price of a stay upfront, including all mandatory fees.
The agreement came on the same day the Federal Trade Commission unveiled a rule banning junk fees, a measure that targets travel companies, such as hotels, short-term rental companies, and online travel agencies.
While some states, such as California, require accommodation providers to display mandatory fees upfront, advocates for the new law have argued that federal legislation is more effective than a patchwork of state laws. Rosanna Maietta, president and CEO of the American Hotel & Lodging Association, praised Congress for including legislation targeting junk fees in the 1,547-page bill, called a continuing resolution.
“We believe the fee-transparency provision included in the continuing resolution is the best way to create a clear set of federal fee-display rules across the lodging industry,” Maietta said in a statement.
“We firmly believe that one national standard is the right approach for consumers and business and that the legislation included in the continuing resolution best accomplishes that goal.”
The Travel Tech Association also supported the legislation. “Travel Tech applauds both the Federal Trade Commission and Congress for advancing policies that set a national standard for price transparency for consumers seeking overnight stays,” said Laura Chadwick, President & CEO of the Travel Technology Association. “Consumers will now see an up-front and consistent total service price for lodging – including nightly room rate and mandatory fees – no matter where they live or how they shop for lodging options, either directly on hotel websites or through online travel comparison tools and services.”
The continuing resolution would avert a government shutdown and ensure that the federal government remains open until March 14, provided it gains approval from both houses of Congress and President Joe Biden by the end of Friday, December 20.
Photo Credit: Consumers could see protection from hidden lodging fees. Flickr / Tracy O
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