Hotel Fees Transparency Act of 2025
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Would require hotels, short-term rentals, and online booking platforms to display the full price — including all mandatory service fees — whenever they advertise or list a room. Taxes imposed by government entities would have to be disclosed before the final purchase.
The bill targets so-called 'junk fees' in lodging, where consumers often see a low base rate early in the booking process only to encounter resort fees and other mandatory charges at checkout.
What this bill would do
What it would do
The bill would make it unlawful for any hotel, short-term rental, or online booking platform to advertise or display a lodging price without clearly and prominently showing the total services price — meaning the base price plus all mandatory service fees — at every point where a price appears. It would also require disclosure of any government-imposed taxes and fees before the consumer completes a purchase. Individual price components could still be broken out, but only in a less prominent way than the total price. An affirmative defense is available to third-party online sellers that relied in good faith on inaccurate price data provided by hotels or short-term rentals, as long as they had procedures to receive current data and acted promptly to correct errors.
The bill would preempt state and local fee-disclosure laws that conflict with its framework, though it preserves state contract, tort, and fraud laws. Enforcement authority is shared between the Federal Trade Commission, which would treat violations as unfair or deceptive practices, and state attorneys general who could file federal civil suits on behalf of state residents. The prohibition would take effect 450 days after enactment.
Key provisions
- 1Would require any covered entity advertising lodging to display the total services price — base price plus all mandatory service fees — clearly and prominently wherever a price appears.
- 2Would require disclosure of the total services price from the moment it is first shown to a potential buyer and throughout the entire purchasing process.
- 3Would require disclosure of all government-imposed taxes, fees, and assessments before the consumer completes the final purchase.
- 4Would give the FTC enforcement authority, treating violations as unfair or deceptive acts subject to existing FTC Act penalties and procedures.
- 5Would authorize state attorneys general to bring federal civil suits on behalf of state residents, with FTC notification and intervention rights.
- 6Would provide an affirmative defense for intermediaries and third-party online sellers that relied in good faith on inaccurate price data from hotels and took prompt corrective action.
- 7Would preempt state fee-disclosure laws that do not meet the bill's total-services-price standard, while preserving state contract, tort, and fraud laws.
Who would be affected
Hotels, short-term rental hosts, third-party online booking platforms (such as travel aggregator sites), and metasearch intermediaries that advertise or sell lodging in interstate commerce. Consumers booking any short-term lodging — hotels, vacation rentals, condos, or timeshares for stays under 30 days — would benefit from clearer upfront pricing. State attorneys general would gain new civil enforcement authority.
Why it matters
Travelers who book lodging today often encounter mandatory resort fees or service charges that are not shown in the initial advertised price, making it difficult to compare true costs across options. If enacted, this bill would require the full mandatory fee load to appear alongside any advertised price, giving consumers accurate cost information before they invest time in a booking — and giving competitors who already price transparently a fairer playing field.
What would change
Changes to existing law
Amends Federal Trade Commission Act (15 U.S.C. 41 et seq.) (Sec. 2(b)(1))
Creates a new category of violation treated as an unfair or deceptive practice under Section 18(a)(1)(B), enforceable using existing FTC jurisdiction and penalties.
Agencies directed to act
Effective dates
- The price transparency prohibition and all its display and disclosure requirements
Funding and costs
Congressional Budget Office estimate
CBO estimates the Hotel Fees Transparency Act of 2025 would impose intergovernmental and private-sector mandates whose compliance costs would not exceed UMRA thresholds, with no significant net effect on the federal budget.
CBO's cost estimate for S. 314, the Hotel Fees Transparency Act of 2025 (as ordered reported by the Senate Committee on Commerce, Science, and Transportation on February 5, 2025), finds that the bill would impose intergovernmental and private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA). CBO estimates the costs of complying with those mandates would not exceed UMRA's statutory thresholds — $103 million for intergovernmental mandates and $206 million for private-sector mandates in 2025, each adjusted annually for inflation. No significant effects on direct federal spending, revenues, or the deficit were identified.
How implementation would work
The bill is largely self-executing: it sets a statutory prohibition with a defined effective date and relies on existing FTC enforcement machinery rather than creating new rulemaking requirements. The FTC would treat violations as unfair or deceptive acts under Section 18 of the FTC Act, using its existing jurisdiction, penalties, and procedures. State attorneys general must notify the FTC before filing a civil action (or immediately upon filing if prior notice is not feasible), and the FTC may intervene. Third-party sellers would need to establish data-intake procedures with hotels and short-term rentals to qualify for the affirmative defense against liability for inaccurate information.
Legislative status & sources
Latest action
Star Print ordered on the reported bill.
Official CRS summary
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This bill requires providers of short-term lodging (e.g., hotels, short-term rentals, and third-party online sellers) to include certain price information when displaying, advertising, or marketing reservations for lodging.
Specifically, such providers must (1) display the total services price, including the base price and any service fees, if a price is displayed in an advertisement. marketing material, or a price list; (2) disclose the total services price at the time the services are first displayed to an individual seeking to purchase such services and anytime thereafter during the purchasing process; and (3) disclose, prior to the final purchase, any tax, fee, or assessment imposed by any government entity (or quasi-government entity) on the sale of such services.
The bill provides for enforcement by the Federal Trade Commission and state attorneys general (or other authorized state officials).
Legislative subjects
Civil actions and liability; Commerce; Consumer affairs; Inflation and prices; Internet, web applications, social media; Landlord and tenant; Marketing and advertising; Service industries; User charges and fees
Committee report
S. Rept. 119-15