Stop Online Booking Scams Act of 2019

I 116TH CONGRESS 1ST SESSION H. R. 3956 To protect consumers from deceptive practices with respect to online booking of hotel reservations, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JULY 24, 2019 Mr. WELCH (for himself, Mr. BILIRAKIS, and Ms. FRANKEL) introduced the following bill; which was referred to the Committee on Energy and Commerce 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 Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Stop Online Booking 4 Scams Act of 2019’’. 5 SEC. 2. DEFINITIONS. 6 In this Act: 7 (1) AFFILIATION CONTRACT.—The term ‘‘affili- 8 ation contract’’ means, with respect to a hotel, a 9 contract with the owner of the hotel, the entity that 10 VerDate Sep 11 2014 04:22 Aug 07, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3956.IH H3956 kjohnson on DSK79L0C42 with BILLS 2 •HR 3956 IH manages the hotel, or the franchisor of the hotel to 1 provide online hotel reservation services for the 2 hotel. 3 (2) COMMISSION.—The term ‘‘Commission’’ 4 means the Federal Trade Commission. 5 (3) EXHIBITION ORGANIZER OR MEETING PLAN- 6 NER.—The term ‘‘exhibition organizer or meeting 7 planner’’ means the person responsible for all as- 8 pects of planning, promoting, and producing a meet- 9 ing, conference, event, or exhibition, including over- 10 seeing and arranging all hotel reservation plans and 11 contracts for the meeting, conference, event, or exhi- 12 bition. 13 (4) OFFICIAL HOUSING BUREAU.—The term 14 ‘‘official housing bureau’’ means the organization 15 designated by an exhibition organizer or meeting 16 planner to provide hotel reservation services for 17 meetings, conferences, events, or exhibitions. 18 (5) PARTY DIRECTLY AFFILIATED.—The term 19 ‘‘party directly affiliated’’ means, with respect to a 20 hotel, a person who has entered into an affiliation 21 contract with the hotel. 22 (6) THIRD PARTY ONLINE HOTEL RESERVATION 23 SELLER.—The term ‘‘third party online hotel res- 24 ervation seller’’ means any person that— 25 VerDate Sep 11 2014 04:22 Aug 07, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3956.IH H3956 kjohnson on DSK79L0C42 with BILLS 3 •HR 3956 IH (A) sells any good or service with respect 1 to a hotel in a transaction effected on the inter- 2 net; and 3 (B) is not— 4 (i) a party directly affiliated with the 5 hotel; or 6 (ii) an exhibition organizer or meeting 7 planner or the official housing bureau for 8 a meeting, conference, event, or exhibition 9 held at the hotel. 10 SEC. 3. REQUIREMENTS FOR THIRD PARTY ONLINE HOTEL 11 RESERVATION SELLERS. 12 (a) REQUIREMENT.—It shall be unlawful for a third 13 party online hotel reservation seller to advertise, market, 14 or promote the sale of a hotel room reservation or charge 15 or attempt to charge any consumer’s credit card, debit 16 card, bank account, or other financial account for any 17 good or service sold in a transaction effected on the inter- 18 net, if the third party online hotel reservation seller states 19 or implies that it is, or is affiliated with, the person who 20 owns the hotel or provides the hotel services or accom- 21 modations. 22 (b) ENFORCEMENT BY COMMISSION.— 23 (1) UNFAIR OR DECEPTIVE ACTS OR PRAC- 24 TICES.—A violation of subsection (a) by a person 25 VerDate Sep 11 2014 04:22 Aug 07, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3956.IH H3956 kjohnson on DSK79L0C42 with BILLS 4 •HR 3956 IH subject to such subsection shall be treated as a viola- 1 tion of a rule defining an unfair or deceptive act or 2 practice prescribed under section 18(a)(1)(B) of the 3 Federal Trade Commission Act (15 U.S.C. 4 57a(a)(1)(B)). 5 (2) POWERS OF COMMISSION.— 6 (A) IN GENERAL.—The Commission shall 7 enforce this section in the same manner, by the 8 same means, and with the same jurisdiction, 9 powers, and duties as though all applicable 10 terms and provisions of the Federal Trade 11 Commission Act (15 U.S.C. 41 et seq.) were in- 12 corporated into and made a part of this Act. 13 (B) PRIVILEGES AND IMMUNITIES.—Any 14 person who violates this section shall be subject 15 to the penalties and entitled to the privileges 16 and immunities provided in the Federal Trade 17 Commission Act (15 U.S.C. 41 et seq.). 18 (C) RULEMAKING.— 19 (i) IN GENERAL.—The Commission 20 may promulgate such rules as the Commis- 21 sion considers appropriate to enforce this 22 section. 23 (ii) PROCEDURES.—The Commission 24 shall carry out any rulemaking under 25 VerDate Sep 11 2014 04:22 Aug 07, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3956.IH H3956 kjohnson on DSK79L0C42 with BILLS 5 •HR 3956 IH clause (i) in accordance with section 553 of 1 title 5, United States Code. 2 (c) ENFORCEMENT BY STATES.— 3 (1) IN GENERAL.—In any case in which the at- 4 torney general of a State has reason to believe that 5 an interest of the residents of the State has been or 6 is being threatened or adversely affected by the en- 7 gagement of any person subject to subsection (a) in 8 a practice that violates such subsection, the attorney 9 general of the State may, as parens patriae, bring 10 a civil action on behalf of the residents of the State 11 in an appropriate district court of the United States 12 to obtain appropriate relief. 13 (2) RIGHTS OF FEDERAL TRADE COMMIS- 14 SION.— 15 (A) NOTICE TO FEDERAL TRADE COMMIS- 16 SION.— 17 (i) IN GENERAL.—Except as provided 18 in clause (iii), the attorney general of a 19 State shall notify the Commission in writ- 20 ing that the attorney general intends to 21 bring a civil action under paragraph (1) 22 before initiating any civil action against a 23 person subject to subsection (a). 24 VerDate Sep 11 2014 04:22 Aug 07, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3956.IH H3956 kjohnson on DSK79L0C42 with BILLS 6 •HR 3956 IH (ii) CONTENTS.—The notification re- 1 quired under clause (i) with respect to a 2 civil action shall include a copy of the com- 3 plaint to be filed to initiate the civil action. 4 (iii) EXCEPTION.—If it is not feasible 5 for the attorney general of a State to pro- 6 vide the notification required by clause (i) 7 before initiating a civil action under para- 8 graph (1), the attorney general shall notify 9 the Commission immediately upon insti- 10 tuting the civil action. 11 (B) INTERVENTION BY FEDERAL TRADE 12 COMMISSION.—The Commission may— 13 (i) intervene in any civil action 14 brought by the attorney general of a State 15 under paragraph (1); and 16 (ii) upon intervening— 17 (I) be heard on all matters aris- 18 ing in the civil action; and 19 (II) file petitions for appeal of a 20 decision in the civil action. 21 (3) INVESTIGATORY POWERS.—Nothing in this 22 subsection may be construed to prevent the attorney 23 general of a State from exercising the powers con- 24 VerDate Sep 11 2014 04:22 Aug 07, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H3956.IH H3956 kjohnson on DSK79L0C42 with BILLS 7 •HR 3956 IH ferred on the attorney general by the laws of the 1 State— 2 (A) to conduct investigations; 3 (B) to administer oaths or affirmations; or 4 (C) to compel the attendance of witnesses 5 or the production of documentary or other evi- 6 dence. 7 (4) STATE COORDINATION WITH FEDERAL 8 TRADE COMMISSION.—If the Commission institutes a 9 civil action or an administrative action with respect 10 to a violation of subsection (a), the attorney general 11 of a State shall coordinate with the Commission be- 12 fore bringing a civil action under paragraph (1) 13 against any defendant named in the complaint of the 14 Commission for the violation with respect to which 15 the Commission instituted such action. 16 (5) VENUE; SERVICE OF PROCESS.— 17 (A) VENUE.—Any action brought under 18 paragraph (1) may be brought in— 19 (i) the district court of the United 20 States that meets applicable requirements 21 relating to venue under section 1391 of 22 title 28, United States Code; or 23 (ii) another court of competent juris- 24 diction. 25 VerDate Sep 11 2014 04:22 Aug 07, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H3956.IH H3956 kjohnson on DSK79L0C42 with BILLS 8 •HR 3956 IH (B) SERVICE OF PROCESS.—In an action 1 brought under paragraph (1), process may be 2 served in any district in which the defendant— 3 (i) is an inhabitant; or 4 (ii) may be found. 5 (6) ACTIONS BY OTHER STATE OFFICIALS.— 6 (A) IN GENERAL.—In addition to civil ac- 7 tions brought by attorneys general under para- 8 graph (1), any other officer of a State who is 9 authorized by the State to do so may bring a 10 civil action under paragraph (1), subject to the 11 same requirements and limitations that apply 12 under this subsection to civil actions brought by 13 attorneys general. 14 (B) SAVINGS PROVISION.—Nothing in this 15 subsection may be construed to prohibit an au- 16 thorized official of a State from initiating or 17 continuing any proceeding in a court of the 18 State for a violation of any civil or criminal law 19 of the State. 20 Æ VerDate Sep 11 2014 04:22 Aug 07, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6301 E:\BILLS\H3956.IH H3956 kjohnson on DSK79L0C42 with BILLS