by Lacey Pfalz
Last updated: 8:50 AM ET, Wed June 12, 2024
The U.S. House of Representatives passed the No Hidden FEES Act on June 11, a bill that will ensure transparency of extra fees for travelers booking all types of accommodations in the United States.
The bill was a major legislative priority of the American Hotel & Lodging Association (AHLA), and the organization advocated for it since it was first introduced in July, 2023.
The hotel industry has been known for tacking on extra hidden fees. Last year, both Hyatt and Hilton made headlines for their hidden fees: Hyatt faced a lawsuit for hiding resort fees from travelers, and Hilton announced it was working on new technology to display the hotel giant’s fees prior to booking following the bill’s initial introduction and increased scrutiny of the company.
The No Hidden FEES Act (H.R. 6543) would establish a single standard for mandatory and transparent fees across the lodging industry. The bill was introduced in the House by Reps. Young Kim R-Calif. and Kathy Castor, D-Fla. It was approved unanimously in December by the House Energy & Commerce Committee and passed in a bipartisan vote in the House of Representatives on June 11.
“It makes sense for all lodging businesses – from short-term rentals to online travel agencies, metasearch sites, and hotels – to tell guests up front about mandatory fees,” said AHLA Interim President & CEO Kevin Carey. “That’s why AHLA has led efforts supporting federal legislation to establish a single and transparent standard for mandatory lodging fee displays and an even competitive playing field.”
“Thanks to Reps. Kim and Castor, we’re one step closer to making this a reality,” Carey continued. “We will continue to work with Senators Klobuchar and Moran on passing their related legislation in the Senate, with the goal of establishing a uniform standard across the industry as law.”
The bill will now be sent to the Senate for approval, and if approved, it will be sent to President Biden, who will then enact it into law.
The Biden Administration has focused on holding large corporations accountable for charging hidden fees: the Federal Trade Commission also proposed a new junk fee ban that would impact more companies than the No Hidden FEES Act, including airlines. It would make it illegal not to disclose the purpose of any extra fees a consumer is required to pay.
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