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

This bill, known as the Hotel Fees Transparency Act of 2025, aims to improve transparency in the advertising and pricing of hotel rooms and short-term rental services. Here’s a breakdown of the main components of the bill:

Prohibitions on Price Advertising

The bill makes it illegal for covered entities (which include hotels, short-term rentals, and third-party sellers) to advertise prices for lodging without clearly and prominently displaying the total price. This total price must include:

• The base price for the services offered.
• Any taxes, fees, or assessments imposed by government entities related to the sale.

Furthermore, if the total price is advertised, it must be clear and conspicuous, ensuring consumers can easily see what they will pay. It also requires that this total price be presented to individuals at the first moment they engage with the purchasing process and throughout that process.

Additional Information Disclosure

The act permits the display of individual pricing components (like service fees) but stipulates that these must not be more prominent than the total price. Additionally, businesses are allowed to disclose optional services or fees, provided they do not mislead consumers.

Enforcement Mechanisms

The Federal Trade Commission (FTC) will enforce these provisions. Violations will be treated similarly to other unfair or deceptive advertising practices defined by existing rules. State attorneys general can also take legal action on behalf of residents if they believe local interests are being affected by these practices. They must notify the FTC before commencing any action.

Affirmative Defense for Intermediaries

A provision in the bill allows intermediaries or third-party online sellers to claim an affirmative defense. This applies if they can demonstrate they took reasonable steps to ensure that the price information they provided was accurate and acted promptly to correct any inaccuracies once notified.

Preemption of State Laws

The bill preempts any state laws that are contrary to its requirements regarding advertising and price disclosures, meaning states cannot impose conflicting regulations on hotel and rental pricing. However, it does not affect state laws related to contracts, fraud, or privacy violations.

Definitions and Applicability

The bill defines key terms such as "covered services," "base services price," "service fees," and "total services price," ensuring clarity around what falls under its purview. The act specifies that its rules apply to transactions taking place after the bill goes into effect, which is set for 450 days after its enactment.

Effective Date

The provisions of this act will become effective 450 days following its enactment, applying to all relevant advertisements and offers made thereafter.

Relevant Companies

• EXPE (Expedia Group, Inc.): As a major online travel agency, Expedia may experience changes in how they present hotel prices to consumers.
• ABNB (Airbnb, Inc.): Since Airbnb offers short-term rental services, the regulations may impact how they advertise pricing structures and fees.
• HLT (Hilton Worldwide Holdings Inc.): As a prominent hotel chain, Hilton will need to ensure compliance with the new pricing transparency requirements in their marketing strategies.