The No Hidden FEES Act of 2023 is a proposed law aimed at making hotel and lodging prices more transparent for consumers. It requires that all mandatory fees be included in the advertised price, so travelers aren't surprised by extra costs at checkout.
What This Bill Does
The No Hidden FEES Act of 2023 is designed to make hotel and lodging prices clearer for consumers. Right now, when you book a hotel room or a short-term rental, you might see a low price at first, but then get hit with extra fees when it's time to pay. These could be things like resort fees or amenities charges that aren't included in the initial price you see. This bill changes that by requiring all mandatory fees to be included in the advertised price from the start.
This means that when you see a price for a hotel room online or through a travel agency, that price has to include all the fees you have to pay to book or stay there. The only exceptions are government taxes or special district assessments, which can still be listed separately. The goal is to make it easier for people to understand the true cost of their stay and to compare prices more fairly across different hotels and platforms.
The bill also gives the Federal Trade Commission (FTC) the power to enforce these rules. If a hotel or travel agency doesn't follow the new rules, the FTC can treat it as an unfair or deceptive act and take action against them. State attorneys general can also enforce the law in federal courts. Additionally, this bill would override any state or local laws that conflict with its provisions, creating a national standard for how lodging prices are advertised.
Why It Matters
This bill is important because it aims to protect consumers from unexpected costs when booking lodging. For many families and travelers, hidden fees can add up quickly, making it difficult to budget for vacations or business trips. By requiring all fees to be included in the advertised price, the bill helps ensure that people know exactly what they'll be paying before they book.
The bill could benefit a wide range of people, from budget-conscious families planning a vacation to business travelers who need to manage expenses carefully. It also helps level the playing field for consumers by making it easier to compare prices across different hotels and booking platforms. This transparency can lead to more informed decisions and potentially save money for travelers.
Key Facts
- Cost/Budget Impact: No specific budget impact or CBO score is available; enforcement relies on existing FTC powers.
- Timeline for Implementation: If enacted, the bill would typically take effect upon presidential signature or within 90-180 days.
- Number of People Affected: All travelers booking short-term lodging, including families and business travelers.
- Key Dates: Introduced on December 1, 2023; passed the House on June 11, 2024.
- Preemption: The bill would override conflicting state laws, establishing a national standard for lodging price advertising.
- Enforcement: The FTC and state attorneys general would have the authority to enforce the bill's provisions.
- Scope: Focuses on provider-assessed mandatory fees, excluding government taxes.
Arguments in Support
- Promotes Transparency: Supporters argue that the bill makes pricing clearer and prevents surprise charges at checkout.
- Facilitates Fair Comparison Shopping: By standardizing how prices are displayed, consumers can more easily compare options and make informed choices.
- Protects Household Budgets: Hidden fees can strain family finances, and this bill aligns with efforts to reduce unnecessary costs.
- Bipartisan Support: The bill has received praise from both Republican and Democratic lawmakers as a straightforward solution to a common problem.
- National Standardization: It creates a consistent rule across the country, avoiding confusion from different state laws.
Arguments in Opposition
- Preemption of State Laws: Some argue that the bill overrides stricter state laws, potentially weakening consumer protections in certain areas.
- Increased Compliance Burden: Critics suggest that requiring total-price displays could complicate marketing and increase costs for providers.
- Risk of Overregulation: There are concerns that the bill could deter advertising of low base rates, which might harm small operators in the lodging industry.