II 

116TH CONGRESS 

1ST SESSION S. 2229 

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 

JULY 23, 2019 

Mr. DAINES (for himself 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 2019’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 

8 (1) AFFILIATION CONTRACT.—The term ‘‘affili9 ation contract’’ means, with respect to a hotel, a 


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

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

3 provide online hotel reservation services for the 

4 hotel. 

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

6 means the Federal Trade Commission. 

7 (3) EXHIBITION ORGANIZER OR MEETING PLAN8 NER.—The term ‘‘exhibition organizer or meeting 

9 planner’’ means the person responsible for all as10 pects of planning, promoting, and producing a meet11 ing, conference, event, or exhibition, including over12 seeing and arranging all hotel reservation plans and 

13 contracts for the meeting, conference, event, or exhi14 bition. 

15 (4) OFFICIAL HOUSING BUREAU.—The term 

16 ‘‘official housing bureau’’ means the organization 

17 designated by an exhibition organizer or meeting 

18 planner to provide hotel reservation services for 

19 meetings, conferences, events, or exhibitions. 

20 (5) PARTY DIRECTLY AFFILIATED.—The term 

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

22 hotel, a person who has entered into an affiliation 

23 contract with the hotel. 


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1 (6) THIRD PARTY ONLINE HOTEL RESERVATION

2 SELLER.—The term ‘‘third party online hotel res3 ervation seller’’ means any person that— 

4 (A) sells any good or service with respect 

5 to a hotel in a transaction effected on the Inter6 net; and 

7 (B) is not— 

8 (i) a party directly affiliated with the 

9 hotel; or 

10 (ii) an exhibition organizer or meeting 

11 planner or the official housing bureau for 

12 a meeting, conference, event, or exhibition 

13 held at the hotel. 

14 SEC. 3. REQUIREMENTS FOR THIRD PARTY ONLINE HOTEL 

15 RESERVATION SELLERS. 

16 (a) REQUIREMENT.—It shall be unlawful for a third 

17 party online hotel reservation seller to advertise, market, 

18 or promote the sale of a hotel room reservation or charge 

19 or attempt to charge any consumer’s credit card, debit 

20 card, bank account, or other financial account for any 

21 good or service sold in a transaction effected on the Inter22 net, if the third party online hotel reservation seller states 

23 or implies that it is, or is affiliated with, the person who 

24 owns the hotel or provides the hotel services or accom25 modations. 


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1 (b) ENFORCEMENT BY COMMISSION.— 

2 (1) UNFAIR OR DECEPTIVE ACTS OR PRAC3 TICES.—A violation of subsection (a) by a person 

4 subject to such subsection shall be treated as a viola5 tion of a rule defining an unfair or deceptive act or 

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

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

8 57a(a)(1)(B)). 

9 (2) POWERS OF COMMISSION.— 

10 (A) IN GENERAL.—The Commission shall 

11 enforce this section in the same manner, by the 

12 same means, and with the same jurisdiction, 

13 powers, and duties as though all applicable 

14 terms and provisions of the Federal Trade 

15 Commission Act (15 U.S.C. 41 et seq.) were in16 corporated into and made a part of this Act. 

17 (B) PRIVILEGES AND IMMUNITIES.—Any 

18 person who violates this section shall be subject 

19 to the penalties and entitled to the privileges 

20 and immunities provided in the Federal Trade 

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

22 (C) RULEMAKING.— 

23 (i) IN GENERAL.—The Commission 

24 may promulgate such rules as the CommisVerDate Sep 11 2014 03:55 Jul 27, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S2229.IS S2229

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1 sion considers appropriate to enforce this 

2 section. 

3 (ii) PROCEDURES.—The Commission 

4 shall carry out any rulemaking under 

5 clause (i) in accordance with section 553 of 

6 title 5, United States Code. 

7 (c) ENFORCEMENT BY STATES.— 

8 (1) IN GENERAL.—In any case in which the at9 torney general of a State has reason to believe that 

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

11 is being threatened or adversely affected by the en12 gagement of any person subject to subsection (a) in 

13 a practice that violates such subsection, the attorney 

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

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

16 in an appropriate district court of the United States 

17 to obtain appropriate relief. 

18 (2) RIGHTS OF FEDERAL TRADE COMMIS19 SION.— 

20 (A) NOTICE TO FEDERAL TRADE COMMIS21 SION.— 

22 (i) IN GENERAL.—Except as provided 

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

24 State shall notify the Commission in writ25 ing that the attorney general intends to 


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1 bring a civil action under paragraph (1) 

2 before initiating any civil action against a 

3 person subject to subsection (a). 

4 (ii) CONTENTS.—The notification re5 quired under clause (i) with respect to a 

6 civil action shall include a copy of the com7 plaint to be filed to initiate the civil action. 

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

9 for the attorney general of a State to pro10 vide the notification required by clause (i) 

11 before initiating a civil action under para12 graph (1), the attorney general shall notify 

13 the Commission immediately upon insti14 tuting the civil action. 

15 (B) INTERVENTION BY FEDERAL TRADE

16 COMMISSION.—The Commission may— 

17 (i) intervene in any civil action 

18 brought by the attorney general of a State 

19 under paragraph (1); and 

20 (ii) upon intervening— 

21 (I) be heard on all matters aris22 ing in the civil action; and 

23 (II) file petitions for appeal of a 

24 decision in the civil action. 


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1 (3) INVESTIGATORY POWERS.—Nothing in this 

2 subsection may be construed to prevent the attorney 

3 general of a State from exercising the powers con4 ferred on the attorney general by the laws of the 

5 State— 

6 (A) to conduct investigations; 

7 (B) to administer oaths or affirmations; or 

8 (C) to compel the attendance of witnesses 

9 or the production of documentary or other evi10 dence. 

11 (4) STATE COORDINATION WITH FEDERAL

12 TRADE COMMISSION.—If the Commission institutes a 

13 civil action or an administrative action with respect 

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

15 of a State shall coordinate with the Commission be16 fore bringing a civil action under paragraph (1) 

17 against any defendant named in the complaint of the 

18 Commission for the violation with respect to which 

19 the Commission instituted such action. 

20 (5) VENUE; SERVICE OF PROCESS.— 

21 (A) VENUE.—Any action brought under 

22 paragraph (1) may be brought in— 

23 (i) the district court of the United 

24 States that meets applicable requirements 


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1 relating to venue under section 1391 of 

2 title 28, United States Code; or 

3 (ii) another court of competent juris4 diction. 

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

6 brought under paragraph (1), process may be 

7 served in any district in which the defendant— 

8 (i) is an inhabitant; or 

9 (ii) may be found. 

10 (6) ACTIONS BY OTHER STATE OFFICIALS.— 

11 (A) IN GENERAL.—In addition to civil ac12 tions brought by attorneys general under para13 graph (1), any other officer of a State who is 

14 authorized by the State to do so may bring a 

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

16 same requirements and limitations that apply 

17 under this subsection to civil actions brought by 

18 attorneys general. 

19 (B) SAVINGS PROVISION.—Nothing in this 

20 subsection may be construed to prohibit an au21 thorized official of a State from initiating or 

22 continuing any proceeding in a court of the 

23 State for a violation of any civil or criminal law 

24 of the State. 

Æ 


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