New legislation is in the works to crack down on hidden fees associated with hotels.
The Hotel Fees Transparency Act would aim to protect consumers from so-called resort fees, according to a report from NBC News.
The new law, if enacted, would directly impact Las Vegas.
“The legislation would require anyone advertising a hotel room or a short-term rental to clearly show upfront the final price a customer would pay to book lodging. It would make the Federal Trade Commission responsible for pursuing violations, and it says state attorneys general could also bring civil action for violations,” according to the report.
The proposal is bipartisan.
“Too often, Americans making reservations online are being met with hidden fees that make it difficult to compare prices and understand the true cost of an overnight stay,” said Sen. Amy Klobuchar, D-Minn., introducing the bill with Sen. Jerry Moran, R-Kan. “This bipartisan legislation would help improve transparency so that travelers can make informed decisions.”
President Joe Biden has said that his administration would attempt to crack down on “junk fees” across numerous industries, including the hospitality sector.
As much as $3 billion annually is spent on the resort fees, according to NYU.
The American Gaming Association, the gambling industry’s top lobbying group on Capitol Hill, has opposed changes, per the report.
Writing in a filing to the FTC, the AGA said: “Changing to all-inclusive pricing would result in removal of existing amenity disclosures and could lead to consumers making assumptions about what services and amenities would be available.”
“We continue to maintain that resort fees provide value,” said Alex Costello, VP of government relations for the American Gaming Association. “We try and make them as easy for the consumer to understand as possible. We’re following existing FTC guidance. We believe that these should remain and that this is a problem that doesn’t need to be solved.”