II 

114TH CONGRESS 

2D SESSION S. 3402 

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 

SEPTEMBER 27, 2016 

Mr. DAINES (for himself, Mr. NELSON, 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 2016’’. 

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 have the utmost clarity 

11 as to the company with which such consumers are 

12 transacting business online. 

13 (4) Actions by third-party sellers that misap14 propriate 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 customers booking hotel 

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

25 and headache 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 provide con7 sumers with clear, accurate information and such 

8 sellers should have an opportunity to compete fairly 

9 with one another; and 

10 (3) the Federal Trade Commission should re11 vise the Internet Web site of the Commission to 

12 make it easier for consumers and businesses to re13 port complaints of deceptive practices with respect to 

14 online booking of hotel reservations. 

15 SEC. 3. DEFINITIONS. 

16 In this Act: 

17 (1) AFFILIATION CONTRACT.—The term ‘‘affili18 ation contract’’ means, with respect to a hotel, a 

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

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

21 provide online hotel reservation services for the 

22 hotel. 

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

24 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 third 

10 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, the fact that the person is a third 

4 party online hotel reservation seller and is 

5 not— 

6 (i) affiliated with the person who owns 

7 the hotel or provides the hotel services or 

8 accommodations; or 

9 (ii) an exhibition organizer or meeting 

10 planner or the official housing bureau for 

11 a meeting, conference, event, or exhibition 

12 held at the hotel; or 

13 (2) includes prominent and continuous disclo14 sure of the brand identity of the third party online 

15 hotel reservation seller throughout the transaction 

16 process, both online and over the phone. 

17 (b) ENFORCEMENT BY COMMISSION.— 

18 (1) UNFAIR OR DECEPTIVE ACTS OR PRAC19 TICES.—A violation of subsection (a) by a person 

20 subject to such subsection shall be treated as a viola21 tion of a rule defining an unfair or deceptive act or 

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

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

24 57a(a)(1)(B)). 

25 (2) POWERS OF COMMISSION.— 


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1 (A) IN GENERAL.—The Commission shall 

2 enforce this section in the same manner, by the 

3 same means, and with the same jurisdiction, 

4 powers, and duties as though all applicable 

5 terms and provisions of the Federal Trade 

6 Commission Act (15 U.S.C. 41 et seq.) were in7 corporated into and made a part of this Act. 

8 (B) PRIVILEGES AND IMMUNITIES.—Any 

9 person who violates this section shall be subject 

10 to the penalties and entitled to the privileges 

11 and immunities provided in the Federal Trade 

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

13 (C) RULEMAKING.— 

14 (i) IN GENERAL.—The Commission 

15 may promulgate such rules as the Commis16 sion considers appropriate to enforce this 

17 section. 

18 (ii) PROCEDURES.—The Commission 

19 shall carry out any rulemaking under 

20 clause (i) in accordance with section 553 of 

21 title 5, United States Code. 

22 (c) ENFORCEMENT BY STATES.— 

23 (1) IN GENERAL.—In any case in which the at24 torney general of a State has reason to believe that 

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


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1 is threatened or adversely affected by the engage2 ment of any person subject to subsection (a) in a 

3 practice that violates such subsection, the attorney 

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

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

6 in an appropriate district court of the United States 

7 to obtain appropriate relief. 

8 (2) RIGHTS OF FEDERAL TRADE COMMIS9 SION.— 

10 (A) NOTICE TO FEDERAL TRADE COMMIS11 SION.— 

12 (i) IN GENERAL.—Except as provided 

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

14 State shall notify the Commission in writ15 ing that the attorney general intends to 

16 bring a civil action under paragraph (1) 

17 before initiating the civil action against a 

18 person subject to subsection (a). 

19 (ii) CONTENTS.—The notification re20 quired by clause (i) with respect to a civil 

21 action shall include a copy of the complaint 

22 to be filed to initiate the civil action. 

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

24 for the attorney general of a State to pro25 vide the notification required by clause (i) 


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1 before initiating a civil action under para2 graph (1), the attorney general shall notify 

3 the Commission immediately upon insti4 tuting the civil action. 

5 (B) INTERVENTION BY FEDERAL TRADE

6 COMMISSION.—The Commission may— 

7 (i) intervene in any civil action 

8 brought by the attorney general of a State 

9 under paragraph (1) against a person de10 scribed in subsection (d)(1); and 

11 (ii) upon intervening— 

12 (I) be heard on all matters aris13 ing in the civil action; and 

14 (II) file petitions for appeal of a 

15 decision in the civil action. 

16 (3) INVESTIGATORY POWERS.—Nothing in this 

17 subsection may be construed to prevent the attorney 

18 general of a State from exercising the powers con19 ferred on the attorney general by the laws of the 

20 State to conduct investigations, to administer oaths 

21 or affirmations, or to compel the attendance of wit22 nesses or the production of documentary or other 

23 evidence. 

24 (4) STATE COORDINATION WITH FEDERAL

25 TRADE COMMISSION.—If the Commission institutes a 


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1 civil action or an administrative action with respect 

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

3 of a State shall coordinate with the Commission be4 fore bringing a civil action under paragraph (1) 

5 against any defendant named in the complaint of the 

6 Commission for the violation with respect to which 

7 the Commission instituted such action. 

8 (5) VENUE; SERVICE OF PROCESS.— 

9 (A) VENUE.—Any action brought under 

10 paragraph (1) may be brought in— 

11 (i) the district court of the United 

12 States that meets applicable requirements 

13 relating to venue under section 1391 of 

14 title 28, United States Code; or 

15 (ii) another court of competent juris16 diction. 

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

18 brought under paragraph (1), process may be 

19 served in any district in which the defendant— 

20 (i) is an inhabitant; or 

21 (ii) may be found. 

22 (6) ACTIONS BY OTHER STATE OFFICIALS.— 

23 (A) IN GENERAL.—In addition to civil ac24 tions brought by attorneys general under para25 graph (1), any other officer of a State who is 


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1 authorized by the State to do so may bring a 

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

3 same requirements and limitations that apply 

4 under this subsection to civil actions brought by 

5 attorneys general. 

6 (B) SAVINGS PROVISION.—Nothing in this 

7 subsection may be construed to prohibit an au8 thorized official of a State from initiating or 

9 continuing any proceeding in a court of the 

10 State for a violation of any civil or criminal law 

11 of the State. 

Æ 


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