FTC calls for legislation over resort fee transparency
Sunday, 11 Jan, 2016
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The Federal Trade Commission has called on Congress to consider new legislation to oversee mandatory resort fees charged at US hotels.
FTC chairwoman Edith Ramirez says legislation is necessary to ensure hotel fees are disclosed at the time of booking.
The consumer protection agency currently investigates hotels when complaints are made on an individual basis.
Ramirez was responding to a group of 10 US representatives who had described the pricing policy as a ‘deceptive and unfair trade practice.’
Addressing the Congress members, Ramirez wrote: "In my view the most efficient and effective means to mandate the type of industry-wide requirement you propose would be through legislation."
Consumer group Travelers United say most guests don’t realize there are manatory charges to pay until they receive a bill at checkout.
The group published a new study which says resort fees are on the increase, with nearly 200 hotels in California imposing a charge of an average $17 per night.
Trade group the American Hotel and Lodging Association, in contrast, says the policy of charging resort fees is declining.
It said only 7% of hotels charged mandatory resort fees in 2014 and those that do disclose them early in the booking process.
"The lodging industry provides guests full disclosure for resort fees charged upfront. Those fees, in addition to the base travel and hotel charges, remain transparent whether consumers book online or with the hotel directly," said spokeswoman Rosanna Maietta.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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