Truth in Hotel Advertising Act of 2016

Summary: Truth in Hotel Advertising Act of 2016 This bill prohibits certain entities that are subject to the enforcement authority of the Federal Trade Commission (FTC) from advertising a rate for a hotel room that does not include all required fees other than taxes and fees imposed by a government. Violations are to be treated as unfair or deceptive acts or practices under the Federal Trade Commission Act. The bill sets forth authority for the FTC and states to enforce against such violations. 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Truth in Hotel Advertising Act of 
2016''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) As of the day before the date of the enactment of this 
        Act, hotel rooms are often advertised at a rate and later in 
        the buying process mandatory fees are disclosed that were not 
        included in the advertised room rate.
            (2) The mandatory fees described in paragraph (1) are 
        sometimes called by names such as ``resort fees'' or ``facility 
        fees'' and they are all mandatory and charged by the hotel in 
        addition to advertised room rates.
            (3) The number of hotels that charged a mandatory resort 
        fees is growing as of the day before the date of the enactment 
        of this Act.
            (4) Advertising that does not reflect the true mandatory 
        cost of a hotel stay is deceptive.
            (5) The Federal Trade Commission has authority under 
        section 5 of the Federal Trade Commission Act (15 U.S.C. 45) to 
        regulate and prohibit unfair or deceptive acts or practices in 
        or affecting commerce.
            (6) In 2012, the Federal Trade Commission exercised its 
        authority under section 5 to issue warning letters to 22 hotel 
        operators. In that letter, the Commission cautioned hotel 
        operators that mandatory resort fees could confuse consumers in 
        violation of section 5(a)(2) of the Federal Trade Commission 
        Act (15 U.S.C. 45(a)(2)).

SEC. 3. PROHIBITION ON UNFAIR AND DECEPTIVE ADVERTISING OF HOTEL ROOM 
              RATES.

    (a) Prohibition.--No person with respect to whom the Federal Trade 
Commission is empowered under section 5(a)(2) of the Federal Trade 
Commission Act (15 U.S.C. 45(a)(2)) may advertise in interstate 
commerce a rate for a hotel room that does not include all required 
fees other than taxes and fees imposed by a government.
    (b) Enforcement by Federal Trade Commission.--
            (1) Unfair or deceptive acts or practices.--A violation of 
        subsection (a) by a person subject to such subsection shall be 
        treated as a violation of a rule defining an unfair or 
        deceptive act or practice prescribed under section 18(a)(1)(B) 
        of the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).
            (2) Powers of commission.--
                    (A) 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 Act.
                    (B) Privileges and immunities.--Any person who 
                violates this section 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.).
                    (C) Rulemaking.--
                            (i) In general.--The Commission may 
                        promulgate such rules as the Commission 
                        considers appropriate to enforce this section.
                            (ii) Procedures.--The Commission shall 
                        carry out any rulemaking under clause (i) in 
                        accordance with section 553 of title 5, United 
                        States Code.
    (c) Enforcement by States.--
            (1) In general.--In any case in which the attorney general 
        of a State has reason to believe that an interest of the 
        residents of the State has been or is threatened or adversely 
        affected by the engagement of any person subject to subsection 
        (a) in a practice that violates such subsection, the attorney 
        general of the State may, as parens patriae, bring a civil 
        action on behalf of the residents of the State in an 
        appropriate district court of the United States to obtain 
        appropriate relief.
            (2) Rights of federal trade commission.--
                    (A) Notice to federal trade commission.--
                            (i) In general.--Except as provided in 
                        clause (iii), the attorney general of a State 
                        shall notify the Commission in writing that the 
                        attorney general intends to bring a civil 
                        action under paragraph (1) before initiating 
                        the civil action against a person subject to 
                        subsection (a).
                            (ii) Contents.--The notification required 
                        by clause (i) with respect to a civil action 
                        shall include a copy of the complaint to be 
                        filed to initiate the civil action.
                            (iii) Exception.--If it is not feasible for 
                        the attorney general of a State to provide the 
                        notification required by clause (i) before 
                        initiating a civil action under paragraph (1), 
                        the attorney general shall notify the 
                        Commission immediately upon instituting the 
                        civil action.
                    (B) Intervention by federal trade commission.--The 
                Commission may--
                            (i) intervene in any civil action brought 
                        by the attorney general of a State under 
                        paragraph (1) against a person described in 
                        subsection (d)(1); and
                            (ii) upon intervening--
                                    (I) be heard on all matters arising 
                                in the civil action; and
                                    (II) file petitions for appeal of a 
                                decision in the civil action.
            (3) Investigatory powers.--Nothing in this subsection may 
        be construed to prevent the attorney general of a State from 
        exercising the powers conferred on the attorney general by the 
        laws of the State to conduct investigations, to administer 
        oaths or affirmations, or to compel the attendance of witnesses 
        or the production of documentary or other evidence.
            (4) Preemptive action by federal trade commission.--If the 
        Federal Trade Commission institutes a civil action or an 
        administrative action with respect to a violation of subsection 
        (c), the attorney general of a State may not, during the 
        pendency of such action, bring a civil action under paragraph 
        (1) against any defendant named in the complaint of the 
        Commission for the violation with respect to which the 
        Commission instituted such action.
            (5) Venue; service of process.--
                    (A) Venue.--Any action brought under paragraph (1) 
                may be brought in--
                            (i) the district court of the United States 
                        that meets applicable requirements relating to 
                        venue under section 1391 of title 28, United 
                        States Code; or
                            (ii) another court of competent 
                        jurisdiction.
                    (B) Service of process.--In an action brought under 
                paragraph (1), process may be served in any district in 
                which the defendant--
                            (i) is an inhabitant; or
                            (ii) may be found.
            (6) Actions by other state officials.--
                    (A) In general.--In addition to civil actions 
                brought by attorneys general under paragraph (1), any 
                other officer of a State who is authorized by the State 
                to do so may bring a civil action under paragraph (1), 
                subject to the same requirements and limitations that 
                apply under this subsection to civil actions brought by 
                attorneys general.
                    (B) Savings provision.--Nothing in this subsection 
                may be construed to prohibit an authorized official of 
                a State from initiating or continuing any proceeding in 
                a court of the State for a violation of any civil or 
                criminal law of the State.
    (d) Effective Date.--Subsection (a) shall take effect on the date 
that is 30 days after the date of the enactment of this Act.