SorcererMC
Well-Known Member
And not once in any of that does it say they can't charge such fees - they challenge them based on how they are obscured and misleading. So for what.. the 4th time? They challenge how they are communicated - not that they exist, nor do they have any authority to stop them from being charged.. nor does Congress. The bill you cite? It's about how the fees are ADVERTISED
https://www.congress.gov/bill/114th-congress/senate-bill/2599/text
How can this not be any more clear? "no person [...] may advertise in interstate commerce a rate for a hotel room that does not include all required fees other than taxes and fees imposed by a government"
It does not ban such fees, it only challenges how prices are advertised. The existence of a fee and the ability to charge it, is seperate from the issues around how they are marketed and disclosed. The FTC has scope over the latter, not the former.
There are still reasons for a resort to charge things as fees, even if the total price quote includes them.
The recent FTC noise is about trying to change the loophole so that the fees need to be included in INITIAL representation of prices.. verse simply at final quotes/purchases.
These are very important distinctions when you talk about the scope of the legal authority to regulate this topic.
You're right - Congress did not try to ban the fees but focused on disclosure/advertising, which falls under 'deceptive' practice. Under FTCA 15 U.S. Code § 45 Section 5(a) the FTC has jurisdiction to determine if a practice is 'deceptive' or 'unfair', ie an independent evaluation of one or the other, or both. The legal standard for an 'unfair practice', given by the FTC Policy Statement on Unfairness
To justify a finding of unfairness the injury must satisfy three tests. It must be substantial; it must not be outweighed by any countervailing benefits to consumers or competition that the practice produces; and it must be an injury that consumers themselves could not reasonably have avoided.
ETA: * to be clear, the same is true if FTC deems it 'deceptive'.
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