WASHINGTON (July 26, 2019) – The American Hotel & Lodging Association (AHLA) commended Representatives Peter Welch (D-VT), Gus Bilirakis (R-FL) and Lois Frankel (D-FL) for introducing the Stop Online Booking Scams Act. This bill is aimed at shielding millions of travelers by putting an end to harmful marketing practices by third-party hotel booking sites.
The Stop Online Booking Scams Act reins in the fraudulent and misleading hotel booking transactions that have negatively impacted 28.5 million hotel stays and cost consumers $5.2 billion in 2017 alone. These deceptive third-party websites give the appearance of being the actual hotel property or affiliated with the hotel, when they are not. The bill prohibits third-party online hotel reservation sellers who are not affiliated with the hotel to advertise, promote or sell a reservation if they state or imply that they are the actual hotel owner or operator of a hotel. This act is also a companion bill to the legislation introduced by Senators Steve Daines (R-MT) and Amy Klobuchar (D-MN) earlier this week, and gives enforcement authority to the Federal Trade Commission and State Attorney Generals for entities that fail to comply with the legislation.
“Misleading websites, online ads and search engines are deceiving consumers into believing they are booking their travel directly through a hotels’ website or call center, when there is no relationship. 94 percent of consumers say they want to know who they are doing business with when booking a hotel room online,” said Chip Rogers, President and CEO of the American Hotel & Lodging Association. “The Stop Online Booking Scams Act sends a clear message that this kind of deceptive behavior won’t be tolerated. We thank United States Representatives Peter Welch, Gus Bilirakis and Lois Frankel for their leadership on this critical issue and encourage their colleagues to join them in protecting consumers across the country from unscrupulous actors by passing this bill into law.”
“At the Basin Harbor Resort in Vermont, we welcome guests who have traveled far and wide. Ensuring their satisfaction is paramount to our property, and our industry. It is important to educate and protect those guests as they search for hotel accommodations online and ensure they know who they are doing business with.” said Pennie Beach, Owner of the Basin Harbor Resort and Boat Club in Vergennes, Vermont. “I’m grateful to Representative Welch for his continued leadership and for introducing this important legislation, which protects guests as they travel to my property and across the state of Vermont.”
“Florida thrives off the tourism industry, and we simply can’t afford for people to be misled through third-party booking websites. All too often, guests who make their hotel bookings through third-party websites arrive at one of our properties only to find out they have fraudulent or inaccurate reservations,” said Keith Overton, President and COO of TradeWinds Island Resorts based in St. Pete Beach, Florida. “I’ve traveled to Washington and discussed this issue with our congressional delegation. I am truly grateful that Representative Bilirakis has listened to my concerns and introduced the Stop Online Booking Scams Act and strongly encourage the entire Florida delegation to join the fight.”
“Misleading third-party websites are masquerading as sites affiliated with a true hotel property. They are deceiving travelers, who often arrive at the check-in counter to find that their reservation was inaccurately conveyed or never even booked,” said Carol Dover, President & CEO, Florida Restaurant & Lodging Association. “It’s a significant and growing problem that must be addressed. I thank Representative Frankel for introducing The Stop Online Booking Scams Act, which will provide federal and state authorities with the tools needed to help safeguard travelers.”