II 

115TH CONGRESS 

1ST SESSION S. 1164 

To protect consumers from deceptive practices with respect to online booking 

of hotel reservations, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MAY 17, 2017 

Mr. DAINES (for himself, Mr. NELSON, Mrs. FISCHER, and Ms. KLOBUCHAR) 

introduced the following bill; which was read twice and referred to the 

Committee on Commerce, Science, and Transportation 

A BILL 

To protect consumers from deceptive practices with respect 

to online booking of hotel reservations, and for other 

purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Stop Online Booking 

5 Scams Act of 2017’’. 

6 SEC. 2. FINDINGS; SENSE OF CONGRESS. 

7 (a) FINDINGS.—Congress finds the following: 

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1 (1) The Internet has become an important 

2 channel of commerce in the United States, account3 ing for billions of dollars in retail sales every year. 

4 (2) Hotel reservation transactions can be easily 

5 made online and online commerce has created a 

6 marketplace where consumers can shop for hotels, 

7 flights, car rentals, and other travel-related services 

8 and products across thousands of brands on a single 

9 platform. 

10 (3) Consumers should be able to clearly identify 

11 the company with which they are transacting busi12 ness online. 

13 (4) Actions by third-party sellers that mis14 appropriate brand identity, trademark, or other mar15 keting content are harmful to consumers. 

16 (5) Platforms offered by online travel agencies 

17 provide consumers with a valuable tool for compara18 tive shopping for hotels and should not be mistaken 

19 for the unlawful third-party actors that commit such 

20 misappropriation. 

21 (6) The misleading and deceptive sales tactics 

22 companies use against consumers booking hotel 

23 rooms online have resulted in the loss of sensitive fi24 nancial and personal information, financial harm, 

25 and other damages for consumers. 

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1 (b) SENSE OF CONGRESS.—It is the sense of Con2 gress that— 

3 (1) consumers benefit from the ability to shop 

4 for travel-related services and products on the inno5 vative platforms offered by online travel agencies; 

6 (2) sellers on the Internet should— 

7 (A) provide consumers with clear, accurate 

8 information; and 

9 (B) have an opportunity to compete fairly 

10 with one another; and 

11 (3) the Federal Trade Commission should re12 vise the Commission’s Internet site to make it easier 

13 for consumers and businesses to report complaints 

14 of deceptive practices with respect to online booking 

15 of hotel reservations. 

16 SEC. 3. DEFINITIONS. 

17 In this Act: 

18 (1) AFFILIATION CONTRACT.—The term ‘‘affili19 ation contract’’ means, with respect to a hotel, a 

20 contract with the owner of the hotel, the entity that 

21 manages the hotel, or the franchisor of the hotel to 

22 provide online hotel reservation services for the 

23 hotel. 

24 (2) COMMISSION.—The term ‘‘Commission’’ 

25 means the Federal Trade Commission. 

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1 (3) EXHIBITION ORGANIZER OR MEETING PLAN2 NER.—The term ‘‘exhibition organizer or meeting 

3 planner’’ means the person responsible for all as4 pects of planning, promoting, and producing a meet5 ing, conference, event, or exhibition, including over6 seeing and arranging all hotel reservation plans and 

7 contracts for the meeting, conference, event, or exhi8 bition. 

9 (4) OFFICIAL HOUSING BUREAU.—The term 

10 ‘‘official housing bureau’’ means the organization 

11 designated by an exhibition organizer or meeting 

12 planner to provide hotel reservation services for 

13 meetings, conferences, events, or exhibitions. 

14 (5) PARTY DIRECTLY AFFILIATED.—The term 

15 ‘‘party directly affiliated’’ means, with respect to a 

16 hotel, a person who has entered into an affiliation 

17 contract with the hotel. 

18 (6) THIRD-PARTY ONLINE HOTEL RESERVATION

19 SELLER.—The term ‘‘third-party online hotel res20 ervation seller’’ means any person that— 

21 (A) sells any good or service with respect 

22 to a hotel in a transaction effected on the Inter23 net; and 

24 (B) is not— 

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1 (i) a party directly affiliated with the 

2 hotel; or 

3 (ii) an exhibition organizer or meeting 

4 planner or the official housing bureau for 

5 a meeting, conference, event, or exhibition 

6 held at the hotel. 

7 SEC. 4. REQUIREMENTS FOR THIRD-PARTY ONLINE HOTEL 

8 RESERVATION SELLERS. 

9 (a) IN GENERAL.—It shall be unlawful for a third10 party online hotel reservation seller to charge or attempt 

11 to charge any consumer’s credit card, debit card, bank ac12 count, or other financial account for any good or service 

13 sold in a transaction effected on the Internet with respect 

14 to a hotel unless the third-party online hotel reservation 

15 seller— 

16 (1) clearly and conspicuously discloses to the 

17 consumer all material terms of the transaction, in18 cluding— 

19 (A) before the conclusion of the trans20 action— 

21 (i) a description of the good or service 

22 being offered; and 

23 (ii) the cost of such good or service; 

24 and 

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1 (B) in a manner that is continuously visi2 ble to the consumer throughout the transaction 

3 process, that the person— 

4 (i) is a third-party online hotel res5 ervation seller; and 

6 (ii) is not— 

7 (I) affiliated with the owner of 

8 the hotel or the entity that provides 

9 the hotel services or accommodations; 

10 or 

11 (II) an exhibition organizer or 

12 meeting planner or the official hous13 ing bureau for a meeting, conference, 

14 event, or exhibition held at the hotel; 

15 or 

16 (2) includes prominent and continuous disclo17 sure of the brand identity of the third-party online 

18 hotel reservation seller throughout the transaction 

19 process, whether online or over the phone. 

20 (b) ENFORCEMENT BY COMMISSION.— 

21 (1) UNFAIR OR DECEPTIVE ACTS OR PRAC22 TICES.—A violation of subsection (a) by a person 

23 subject to such subsection shall be treated as a viola24 tion of a rule defining an unfair or deceptive act or 

25 practice prescribed under section 18(a)(1)(B) of the 

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1 Federal Trade Commission Act (15 U.S.C. 

2 57a(a)(1)(B)). 

3 (2) POWERS OF COMMISSION.— 

4 (A) IN GENERAL.—The Commission shall 

5 enforce this section in the same manner, by the 

6 same means, and with the same jurisdiction, 

7 powers, and duties as though all applicable 

8 terms and provisions of the Federal Trade 

9 Commission Act (15 U.S.C. 41 et seq.) were in10 corporated into and made a part of this Act. 

11 (B) PRIVILEGES AND IMMUNITIES.—Any 

12 person who violates this section shall be subject 

13 to the penalties and entitled to the privileges 

14 and immunities provided in the Federal Trade 

15 Commission Act (15 U.S.C. 41 et seq.). 

16 (C) RULEMAKING.— 

17 (i) IN GENERAL.—The Commission 

18 may promulgate such rules as the Commis19 sion considers appropriate to enforce this 

20 section. 

21 (ii) PROCEDURES.—The Commission 

22 shall carry out any rulemaking under 

23 clause (i) in accordance with section 553 of 

24 title 5, United States Code. 

25 (c) ENFORCEMENT BY STATES.— 

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1 (1) IN GENERAL.—In any case in which the at2 torney general of a State has reason to believe that 

3 an interest of the residents of the State has been or 

4 is being threatened or adversely affected by the en5 gagement of any person subject to subsection (a) in 

6 a practice that violates such subsection, the attorney 

7 general of the State may, as parens patriae, bring 

8 a civil action on behalf of the residents of the State 

9 in an appropriate district court of the United States 

10 to obtain appropriate relief. 

11 (2) RIGHTS OF FEDERAL TRADE COMMIS12 SION.— 

13 (A) NOTICE TO FEDERAL TRADE COMMIS14 SION.— 

15 (i) IN GENERAL.—Except as provided 

16 in clause (iii), the attorney general of a 

17 State shall notify the Commission in writ18 ing that the attorney general intends to 

19 bring a civil action under paragraph (1) 

20 before initiating any civil action against a 

21 person subject to subsection (a). 

22 (ii) CONTENTS.—The notification re23 quired under clause (i) with respect to a 

24 civil action shall include a copy of the com25 plaint to be filed to initiate the civil action. 

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1 (iii) EXCEPTION.—If it is not feasible 

2 for the attorney general of a State to pro3 vide the notification required by clause (i) 

4 before initiating a civil action under para5 graph (1), the attorney general shall notify 

6 the Commission immediately upon insti7 tuting the civil action. 

8 (B) INTERVENTION BY FEDERAL TRADE

9 COMMISSION.—The Commission may— 

10 (i) intervene in any civil action 

11 brought by the attorney general of a State 

12 under paragraph (1); and 

13 (ii) upon intervening— 

14 (I) be heard on all matters aris15 ing in the civil action; and 

16 (II) file petitions for appeal of a 

17 decision in the civil action. 

18 (3) INVESTIGATORY POWERS.—Nothing in this 

19 subsection may be construed to prevent the attorney 

20 general of a State from exercising the powers con21 ferred on the attorney general by the laws of the 

22 State— 

23 (A) to conduct investigations; 

24 (B) to administer oaths or affirmations; or 

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1 (C) to compel the attendance of witnesses 

2 or the production of documentary or other evi3 dence. 

4 (4) STATE COORDINATION WITH FEDERAL

5 TRADE COMMISSION.—If the Commission institutes a 

6 civil action or an administrative action with respect 

7 to a violation of subsection (a), the attorney general 

8 of a State shall coordinate with the Commission be9 fore bringing a civil action under paragraph (1) 

10 against any defendant named in the complaint of the 

11 Commission for the violation with respect to which 

12 the Commission instituted such action. 

13 (5) VENUE; SERVICE OF PROCESS.— 

14 (A) VENUE.—Any action brought under 

15 paragraph (1) may be brought in— 

16 (i) the district court of the United 

17 States that meets applicable requirements 

18 relating to venue under section 1391 of 

19 title 28, United States Code; or 

20 (ii) another court of competent juris21 diction. 

22 (B) SERVICE OF PROCESS.—In an action 

23 brought under paragraph (1), process may be 

24 served in any district in which the defendant— 

25 (i) is an inhabitant; or 

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1 (ii) may be found. 

2 (6) ACTIONS BY OTHER STATE OFFICIALS.— 

3 (A) IN GENERAL.—In addition to civil ac4 tions brought by attorneys general under para5 graph (1), any other officer of a State who is 

6 authorized by the State to do so may bring a 

7 civil action under paragraph (1), subject to the 

8 same requirements and limitations that apply 

9 under this subsection to civil actions brought by 

10 attorneys general. 

11 (B) SAVINGS PROVISION.—Nothing in this 

12 subsection may be construed to prohibit an au13 thorized official of a State from initiating or 

14 continuing any proceeding in a court of the 

15 State for a violation of any civil or criminal law 

16 of the State. 

Æ 

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