Prohibits deceptive rate advertising for certain accommodations; requires advertised rates to be inclusive of all taxes and automatic fees; requires the non-inclusive rate, and an itemized list of taxes and automatic fees to be provided to the consumer prior to a person finalizing their purchase.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A1323
SPONSOR: Vanel TITLE OF BILL:
An act to amend the general business law, in relation to prohibiting
deceptive rate advertising for certain accommodations
PURPOSE OR GENERAL IDEA OF BILL:
Prohibits deceptive rate advertising for certain accommodations.
SUMMARY OF SPECIFIC PROVISIONS:
Section_209-h(1):Requiresthat all advertisements or solicitations that
communicate a rate or rates for an accommodation be inclusive of all
taxes and automatic fees.
Section 209-h(2):contains definitions for the terms "rate", "accommo-
dation"; "automatic fees", "inclusive rate" "non-inclusive rate", "mark-
eter", "points" and "credits".
Section 209-h(3):requires operators or marketers to, by default, provide
the consumer with the inclusive rate, but upon consumer request may
provide an itemized list and non-inclusive rate.
Section 209-h(4):Clarifies certain restrictions on advertising.
Section 209-h(5):Clarifies liability for conduct of operators and mark-
eters. Section 209-h(6):Creates a civil penalty.
Section 209-h(7):States that any agreement relating to the waiver of any
provision of this section is void.
Section 209-h(8):Clarifies that this section does not apply to accommo-
dations located outside the state.
JUSTIFICATION:
Any person that has traveled can relate to this frustrating scenario:
after finding an affordable hotel rate online, you laboriously enter
your personal information, only to be blindsided at checkout by unex-
pected resort fees, cleaning fees, and other hidden charges that jack up
the total cost by hundreds of dollars.
The major issue with these surprise fees is that they require customers
to jump through hoops to get an accurate price quote; leaving customers
stranded at checkout with no choice but to either acquiesce to wasting
their time or paying. extra. And with each hotel imposing its own unique
set of fees, the initial search can become an exercise in uncertainty,
with hidden costs piling up and making seemingly budget-friendly options
more expensive than their pricier counterparts.
New York stands as one of the world's most visited places in the world,
welcoming tens of millions of travelers from both the United States and
abroad each year. And from the ski resorts and mountainous hiking trails
to the lively cities and vineyards, New York's diverse landscape capti-
vates even its own residents who seek to explore their state. To fully
indulge in these experiences, most of these groups of people will choose
to stay in one the state's abundant unique and high-quality accommo-
dations. Yet, because of this, they will also have to deal with the
struggles of booking those accommodations that occur as a result of
surprise fees.
This bill simply demands that hotel operators and remarketers be upfront
about the costs of their accommodations. It will save consumers from
wasted time and make traveling to New York a much more pleasant experi-
ence for everyone.
PRIOR LEGISLATIVE HISTORY:
03/24/23 referred to consumer affairs and protection
01/03/24 referred to consumer affairs and protection
FISCAL IMPLICATIONS:
TBD
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become a law.
STATE OF NEW YORK
________________________________________________________________________
1323
2025-2026 Regular Sessions
IN ASSEMBLY
January 9, 2025
___________
Introduced by M. of A. VANEL -- read once and referred to the Committee
on Consumer Affairs and Protection
AN ACT to amend the general business law, in relation to prohibiting
deceptive rate advertising for certain accommodations
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The general business law is amended by adding a new section
2 209-h to read as follows:
3 § 209-h. Deceptive advertising. 1. Every advertisement or solicitation
4 communicating a rate or rates for an accommodation in this state made by
5 an operator of an accommodation or marketer shall be deemed deceptive if
6 such rate or rates are not inclusive of all taxes and automatic fees.
7 This section shall be construed as applying to all instances and mediums
8 where the rate or rates are communicated.
9 2. For purposes of this section, the following terms shall have the
10 following meanings:
11 (a) "Rate" shall mean the costs associated with staying at an accommo-
12 dation, whether displayed as a nightly, daily, or aggregate price and
13 whether represented in currency, points, credits, or a similar represen-
14 tation, paid by a guest to stay at the accommodation.
15 (b) "Accommodation" shall mean a hotel, motel, inn or short-term
16 rental. "Short-term rental" shall be defined as an entire dwelling unit,
17 or a room, group of rooms, other living or sleeping space, or any other
18 space, made available for rent by guests for less than thirty consec-
19 utive days.
20 (c) "Automatic fees" shall include all such fees that are charged to a
21 guest without respect for such guest's right or ability to be reimbursed
22 for or refuse to pay the fee or any part thereof. Automatic fees shall
23 include, but shall not be limited to, service fees, resort fees, desti-
24 nation fees, amenity fees, facility fees, housekeeping or cleaning fees,
25 mandatory gratuities, and any fee for a good or service due at the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03736-01-5
A. 1323 2
1 accommodation or elsewhere, before, during, or after the guest concludes
2 their stay, that is automatically charged in full absent notification to
3 the accommodation by the guest that the good or service being charged
4 for was not utilized. A guest's right to refuse or be reimbursed for an
5 automatic payment shall have no effect on the fee's classification.
6 Taxes shall include all applicable federal, state, and local taxes.
7 (d) "Inclusive rate" shall mean the total cost amount the consumer is
8 expected to pay, including any additional taxes or fees.
9 (e) "Non-inclusive rate" shall mean the cost amount for only the
10 services being provided, which does not include additional taxes and
11 fees which may be imposed.
12 (f) "Marketer" shall mean any person or entity who, in the normal
13 course of business, displays, advertises or solicits rates for accommo-
14 dations.
15 (g) "Points" and "credits" shall include all incentives offered by an
16 issuing entity that can be redeemed at an accommodation, irrespective of
17 the issuer. Points and credits shall include, but shall not be limited
18 to, points issued by credit card issuers, operators of accommodations,
19 rewards programs, loyalty programs, and any combination thereof.
20 3. Upon request by a consumer, the operator of an accommodation or
21 marketer shall be required to provide the consumer with the non-inclu-
22 sive rate, and an itemized list of taxes and automatic fees prior to a
23 person finalizing their purchase. Absent of such request, the operator
24 of an accommodation or marketer shall be permitted to provide the
25 consumer with the inclusive rate.
26 4. Where a rate is payable in points or credits, irrespective of the
27 issuing entity, every instance of the rate shall be conspicuously accom-
28 panied by the sum of taxes and automatic fees, including all taxes and
29 automatic fees charged by the issuing entity where the entity is not the
30 operator of the accommodation.
31 5. No operator of an accommodation or marketer shall be liable under
32 this section for any unforeseeable acts or circumstances which cause the
33 inadvertent communication of a non-inclusive rate provided that the
34 operator, upon being notified of the existence of such an error, prompt-
35 ly notify any guest who has reserved the rate and provide them with the
36 option to refund their reservation without penalty in the same amount
37 and type of consideration paid.
38 6. Any operator of an accommodation or marketer who violates the
39 provisions of this section shall be liable for a civil penalty of not
40 less than one thousand dollars, but not more than three thousand
41 dollars, per violation.
42 7. Any agreement relating to the waiver of any provision within this
43 section shall be void.
44 8. This section shall not be construed as having any effect on adver-
45 tisements or solicitations for accommodations located outside the state
46 of New York.
47 § 2. This act shall take effect on the one hundred eightieth day after
48 it shall have become a law.
