Protecting consumers from excessive and hidden fees
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(a) Protecting consumers from hidden fees (1) In general A covered entity shall clearly and conspicuously display, in each advertisement and when a price is first shown to a consumer, the total price of the good or service provided by the covered entity, including any mandatory fees a consumer would incur during the purchase of the good or service and any mandatory government charge related to such purchase. (2) Price consistency A covered entity shall ensure that any mandatory fee incurred by a consumer during the purchase process does not change from that advertised to the consumer. (b) Excessive fees A covered entity shall not impose on a consumer or advertise any mandatory fees that are excessive or deceptive for any good or service offered by the covered entity. (c) Ticket holdbacks If a good or service provided by a covered entity is a ticket to a sporting event, theater, musical performance, or other live performance that an audience watches as the live performance occurs, the covered entity shall, not less than 72 hours prior to the first public sale or presale of such ticket, clearly and conspicuously disclose to the public, including at the point of sale, the total number of tickets offered for sale by the covered entity or available for the given event. (d) Protecting refunds A covered entity shall clearly and conspicuously disclose any guarantee or refund policy prior to the completion of a transaction by the consumer and, in the event of a refund, provide a refund in the amount of the total cost of the ticket including any mandatory fees. (e) Speculative ticketing If a covered entity does not possess a ticket at the time of the sale, it shall provide to the consumer— (1) a clear and conspicuous notice that the covered entity does not possess the ticket; and (2) a full refund if the covered entity cannot provide the ticket advertised to the consumer in a timely manner prior to the event. (f) Rulemaking on excessive and hidden fees The Federal Trade Commission may promulgate rules in accordance with section 553 of title 5, United States Code, regarding the disclosure and imposition of mandatory or deceptive fees, including any such fee not described in subsections (a) through (e). (g) Excessive fees In considering whether a mandatory fee is excessive, the Federal Trade Commission or court shall take into consideration— (1) whether the fee is reasonable and proportional to the cost of the good or service provided by the covered entity; (2) the reason for which the covered entity charges such fee; and (3) any other factors determined appropriate by the Federal Trade Commission or the court. (h) Enforcement (1) Enforcement by the Commission (A) Unfair or deceptive acts or practices A violation of this section or a regulation promulgated thereunder shall be treated as a violation of a rule defining an unfair or deceptive act or practice under section 18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)). (B) Powers of the Commission (i) In general The Federal Trade Commission shall enforce this section in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms and provisions of the Federal Trade Commission Act (15 U.S.C. 41 et seq.) were incorporated into and made a part of this section. (ii) Privileges and immunities Any person who violates this section or a regulation promulgated thereunder shall be subject to the penalties and entitled to the privileges and immunities provided in the Federal Trade Commission Act (15 U.S.C. 41 et seq.). (iii) Authority preserved Nothing in this section shall be construed to limit the authority of the Federal Trade Commission under any other provision of law. (2) Enforcement by States (A) In general If the attorney general of a State has reason to believe that a covered entity has violated or is violating this section or a regulation promulgated thereunder that affects the residents of that State, the State, as parens patriae, may bring a civil action in any appropriate district court of the United States, to— (i) enjoin any further violation by the covered entity; (ii) enforce compliance with this section or such regulation; (iii) obtain other remedies permitted under State law; and (iv) obtain damages, restitution, or other compensation on behalf of residents of the State. (B) Notice The attorney general of a State shall provide prior written notice of any action under subparagraph (A) to the Commission and provide the Commission with a copy of the complaint in the action, except in any case in which such prior notice is not feasible, in which case the attorney general shall serve such notice immediately upon instituting such action. (C) Intervention by the Commission Upon receiving notice under subparagraph (B), the Commission shall have the right— (i) to intervene in the action; (ii) upon so intervening, to be heard on all matters arising therein; and (iii) to file petitions for appeal. (D) Limitation on State action while Federal action is pending If the Commission has instituted a civil action for violation of this section or a regulation promulgated thereunder, no attorney general of a State, or official or agency of a State, may bring a separate action under subparagraph (A) during the pendency of that action against any defendant named in the complaint of the Commission for any violation of this section or a regulation promulgated thereunder that is alleged in the complaint. An attorney general of a State, or official or agency of a State, may join a civil action for a violation of this section or a regulation promulgated thereunder filed by the Commission. (E) Rule of construction For purposes of bringing a civil action under subparagraph (A), nothing in this section shall be construed to prevent the chief law enforcement officer or official or agency of a State, from exercising the powers conferred on such chief law enforcement officer or official or agency of a State, by the laws of the State to conduct investigations, administer oaths or affirmations, or compel the attendance of witnesses or the production of documentary and other evidence. (i) Definitions In this section: (1) Covered entity (A) In general The term covered entity means— (i) a provider of short-term lodging or an online platform that allows for the booking of short-term lodging; (ii) a provider of a ticketing service that sells tickets for an event or retains the authority to otherwise distribute tickets for such event, whether as a primary seller of tickets or in the secondary marketplace for ticket sales; or (iii) any other entity determined appropriate by the Commission through a rulemaking in accordance with section 553 of title 5, United States Code. (B) Short-term lodging (i) In general Except as provided in clause (ii), the term short-term lodging means any lodging that is offered for an occupancy of less than 6 months or temporary sleeping accommodations at a hotel, motel, inn, short-term rental, vacation rental, or other place of lodging. (ii) Exclusion The term short-term lodging shall not include an accommodation of 6 months or more through a landlord-tenant relationship. (2) Deceptive fee The term deceptive fee includes— (A) any fee for which the nature, purpose, amount, or refundability of such fee is misrepresented; and (B) any mandatory fee misrepresented as an optional fee that a consumer must opt out of. (3) Mandatory fee The term mandatory fee includes— (A) any fee or surcharge that a consumer is required to pay to purchase a good or service being advertised; (B) a fee or surcharge that is not reasonably avoidable; (C) a fee or surcharge for a good or service that a reasonable consumer would not expect to be included with the purchase of the good or service being advertised; or (D) any other fee or surcharge determined appropriate by the Commission.