Hotel Fees Transparency Act of 2025
The Hotel Fees Transparency Act of 2025 would require that prices for hotel rooms and other short-term lodging displayed in interstate commerce be presented with full price transparency. Specifically, covered entities (hotels, short-term rentals, third-party sellers, and intermediaries) would be forbidden from advertising or offering prices that do not clearly show the total services price (base price plus any service fees) and from omitting government taxes, fees, or assessments from the total price disclosed before purchase. While individual price components could be shown if they are less prominent than the total price, the total cost must be clearly, conspicuously, and prominently displayed at first contact and throughout the purchasing process, with taxes/fees disclosed before final purchase. The bill would also set up enforcement by the Federal Trade Commission (FTC) and state attorneys general, provide a targeted affirmative defense for intermediaries under certain conditions, and preempt conflicting state price-disclosure laws. It would take effect 450 days after enactment. This aims to curb hidden or misleading pricing in lodging markets, reducing surprise charges for consumers and potentially shifting how hotels and online platforms present and manage pricing across platforms.
Key Points
- 1Prohibition on deceptive price advertising: Any price displayed for covered services must clearly, conspicuously, and prominently show the total services price (base price plus service fees) and must disclose the total price when first shown and throughout the purchasing process; taxes, fees, or assessments from government entities must be disclosed prior to final purchase.
- 2Allowance for component details: Display of individual price components is allowed if those components are less prominent than the total price and do not obscure the total price required by the act.
- 3Enforcement and penalties: Violations would be treated as unfair or deceptive acts or practices under the FTC Act. The FTC would enforce the act with its existing authority, and state attorneys general could sue on behalf of their residents (with notice to the FTC and potential Commission intervention).
- 4Intermediary affirmative defense: Intermediaries (e.g., OTA platforms) may defend against liability if they have procedures to receive up-to-date price information, rely in good faith on data provided by hotels or their agents, and promptly remove or correct false total price information after notice.
- 5Preemption of state laws: States (and their subdivisions) may not maintain laws that prohibit advertising or pricing practices that conflict with the total price requirement, unless a state law requires the total services price to include each service fee. The act preserves certain state rights (contracts, torts, fraud, and data-security-related provisions).