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[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 3402 Introduced in Senate (IS)]

<DOC>

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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Stop Online Booking Scams Act of 
2016''.

SEC. 2. FINDINGS; SENSE OF CONGRESS.

    (a) Findings.--Congress finds the following:
            (1) The Internet has become an important channel of 
        commerce in the United States, accounting for billions of 
        dollars in retail sales every year.
            (2) Hotel reservation transactions can be easily made 
        online and online commerce has created a marketplace where 
        consumers can shop for hotels, flights, car rentals, and other 
        travel-related services and products across thousands of brands 
        on a single platform.
            (3) Consumers should have the utmost clarity as to the 
        company with which such consumers are transacting business 
        online.
            (4) Actions by third-party sellers that misappropriate 
        brand identity, trademark, or other marketing content are 
        harmful to consumers.
            (5) Platforms offered by online travel agencies provide 
        consumers with a valuable tool for comparative shopping for 
        hotels and should not be mistaken for the unlawful third-party 
        actors that commit such misappropriation.
            (6) The misleading and deceptive sales tactics companies 
        use against customers booking hotel rooms online have resulted 
        in the loss of sensitive financial and personal information, 
        financial harm, and headache for consumers.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) consumers benefit from the ability to shop for travel-
        related services and products on the innovative platforms 
        offered by online travel agencies;
            (2) sellers on the Internet should provide consumers with 
        clear, accurate information and such sellers should have an 
        opportunity to compete fairly with one another; and
            (3) the Federal Trade Commission should revise the Internet 
        Web site of the Commission to make it easier for consumers and 
        businesses to report complaints of deceptive practices with 
        respect to online booking of hotel reservations.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Affiliation contract.--The term ``affiliation 
        contract'' means, with respect to a hotel, a contract with the 
        owner of the hotel, the entity that manages the hotel, or the 
        franchisor of the hotel to provide online hotel reservation 
        services for the hotel.
            (2) Commission.--The term ``Commission'' means the Federal 
        Trade Commission.
            (3) Exhibition organizer or meeting planner.--The term 
        ``exhibition organizer or meeting planner'' means the person 
        responsible for all aspects of planning, promoting, and 
        producing a meeting, conference, event, or exhibition, 
        including overseeing and arranging all hotel reservation plans 
        and contracts for the meeting, conference, event, or 
        exhibition.
            (4) Official housing bureau.--The term ``official housing 
        bureau'' means the organization designated by an exhibition 
        organizer or meeting planner to provide hotel reservation 
        services for meetings, conferences, events, or exhibitions.
            (5) Party directly affiliated.--The term ``party directly 
        affiliated'' means, with respect to a hotel, a person who has 
        entered into an affiliation contract with the hotel.
            (6) Third party online hotel reservation seller.--The term 
        ``third party online hotel reservation seller'' means any 
        person that--
                    (A) sells any good or service with respect to a 
                hotel in a transaction effected on the Internet; and
                    (B) is not--
                            (i) a party directly affiliated with the 
                        hotel; or
                            (ii) an exhibition organizer or meeting 
                        planner or the official housing bureau for a 
                        meeting, conference, event, or exhibition held 
                        at the hotel.

SEC. 4. REQUIREMENTS FOR THIRD PARTY ONLINE HOTEL RESERVATION SELLERS.

    (a) In General.--It shall be unlawful for a third party online 
hotel reservation seller to charge or attempt to charge any consumer's 
credit card, debit card, bank account, or other financial account for 
any good or service sold in a transaction effected on the Internet with 
respect to a hotel unless the third party online hotel reservation 
seller--
            (1) clearly and conspicuously discloses to the consumer all 
        material terms of the transaction, including--
                    (A) before the conclusion of the transaction--
                            (i) a description of the good or service 
                        being offered; and
                            (ii) the cost of such good or service; and
                    (B) in a manner that is continuously visible to the 
                consumer throughout the transaction process, the fact 
                that the person is a third party online hotel 
                reservation seller and is not--
                            (i) affiliated with the person who owns the 
                        hotel or provides the hotel services or 
                        accommodations; or
                            (ii) an exhibition organizer or meeting 
                        planner or the official housing bureau for a 
                        meeting, conference, event, or exhibition held 
                        at the hotel; or
            (2) includes prominent and continuous disclosure of the 
        brand identity of the third party online hotel reservation 
        seller throughout the transaction process, both online and over 
        the phone.
    (b) Enforcement by 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 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) State coordination with federal trade commission.--If 
        the Commission institutes a civil action or an administrative 
        action with respect to a violation of subsection (a), the 
        attorney general of a State shall coordinate with the 
        Commission before bringing 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.
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