S T A T E O F N E W Y O R K
________________________________________________________________________
5926
2023-2024 Regular Sessions
I N A S S E M B L Y
March 24, 2023
___________
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:
Section 1. The general business law is amended by adding a new section
209-h to read as follows:
§ 209-H. DECEPTIVE ADVERTISING. 1. (A) EVERY ADVERTISEMENT OR SOLIC-
ITATION COMMUNICATING A RATE OR RATES FOR AN ACCOMMODATION IN THIS STATE
SUBJECT TO THE PROVISIONS OF THIS ARTICLE SHALL BE DEEMED DECEPTIVE IF
SUCH RATE OR RATES ARE NOT INCLUSIVE OF ALL TAXES AND AUTOMATIC FEES.
THIS SECTION SHALL BE CONSTRUED AS APPLYING TO ALL INSTANCES AND MEDIUMS
WHERE THE RATE OR RATES ARE COMMUNICATED.
(B) FOR PURPOSES OF THIS SECTION, THE TERM "RATE" SHALL MEAN THE
NIGHTLY AND AGGREGATE PRICE, WHETHER REPRESENTED IN CURRENCY, POINTS,
CREDITS, OR A SIMILAR REPRESENTATION, PAID BY A GUEST TO STAY AT THE
ACCOMMODATION.
(C) FOR PURPOSES OF THIS SECTION, THE TERM "ACCOMMODATION" SHALL MEAN
A HOTEL, MOTEL OR INN.
(D) AUTOMATIC FEES SHALL INCLUDE ALL SUCH FEES THAT ARE CHARGED TO A
GUEST WITHOUT RESPECT FOR SUCH GUEST'S RIGHT OR ABILITY TO BE REIMBURSED
FOR OR REFUSE TO PAY THE FEE OR ANY PART THEREOF. AUTOMATIC FEES SHALL
INCLUDE, BUT SHALL NOT BE LIMITED TO, SERVICE FEES, RESORT FEES, DESTI-
NATION FEES, AMENITY FEES, FACILITY FEES, HOUSEKEEPING OR CLEANING FEES,
MANDATORY GRATUITIES, AND ANY FEE FOR A GOOD OR SERVICE DUE AT THE
ACCOMMODATION OR ELSEWHERE, BEFORE, DURING, OR AFTER THE GUEST CONCLUDES
HIS OR HER STAY, THAT IS AUTOMATICALLY CHARGED IN FULL ABSENT NOTIFICA-
TION TO THE ACCOMMODATION BY THE GUEST THAT THE GOOD OR SERVICE BEING
CHARGED FOR WAS NOT UTILIZED. A GUEST'S RIGHT TO REFUSE OR BE REIMBURSED
FOR AN AUTOMATIC PAYMENT SHALL HAVE NO EFFECT ON THE FEE'S CLASSIFICA-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10040-02-3
A. 5926 2
TION. TAXES SHALL INCLUDE ALL APPLICABLE FEDERAL, STATE, AND LOCAL
TAXES.
2. THIS SECTION SHALL APPLY TO ACCOMMODATION OPERATORS AND REMARKET-
ERS. FOR PURPOSES OF THIS SECTION, REMARKETERS SHALL BE DEEMED ACCOMMO-
DATION OPERATORS. A REMARKETER IS AN INDIVIDUAL OR ENTITY, WHO RESERVES,
ARRANGES FOR, CONVEYS, OR FURNISHES OCCUPANCY, WHETHER DIRECTLY OR INDI-
RECTLY, TO A GUEST FOR A RATE DETERMINED BY THE REMARKETER, DIRECTLY OR
INDIRECTLY, WHETHER PURSUANT TO A WRITTEN OR OTHER AGREEMENT.
3. AN OPERATOR OF AN ACCOMMODATION SHALL BE PERMITTED TO PROVIDE THE
GUEST THE OPTION TO VIEW THE NON-INCLUSIVE RATE PROVIDED HOWEVER THAT
SUCH A RATE SHALL NOT BE COMMUNICATED IN ABSENCE OF THE REQUEST.
4. THE OPERATOR OF AN ACCOMMODATION SHALL NOT BE REQUIRED TO STATE
THAT THE ADVERTISED RATE IS INCLUSIVE OF ALL TAXES AND AUTOMATIC FEES
BUT SHALL BE REQUIRED TO MAKE AVAILABLE AN ITEMIZED LIST OF THE TAXES
AND AUTOMATIC FEES PRIOR TO A PERSON FINALIZING HIS OR HER PURCHASE.
5. (A) WHERE A RATE IS PAYABLE IN POINTS OR CREDITS, IRRESPECTIVE OF
THE ISSUING ENTITY, EVERY INSTANCE OF THE RATE SHALL BE CONSPICUOUSLY
ACCOMPANIED BY THE SUM OF TAXES AND AUTOMATIC FEES, INCLUDING ALL TAXES
AND AUTOMATIC FEES CHARGED BY THE ISSUING ENTITY WHERE THE ENTITY IS NOT
THE OPERATOR OF THE ACCOMMODATION.
(B) FOR PURPOSES OF THIS SECTION, "POINTS" AND "CREDITS" SHALL INCLUDE
ALL INCENTIVES OFFERED BY AN ISSUING ENTITY THAT CAN BE REDEEMED AT AN
ACCOMMODATION, IRRESPECTIVE OF THE ISSUER. POINTS AND CREDITS SHALL
INCLUDE, BUT SHALL NOT BE LIMITED TO, POINTS ISSUED BY CREDIT CARD
ISSUERS, OPERATORS OF ACCOMMODATIONS, REWARDS PROGRAMS, LOYALTY
PROGRAMS, AND ANY COMBINATION THEREOF.
6. NO OPERATOR OF AN ACCOMMODATION SHALL BE LIABLE UNDER THIS SECTION
FOR ANY UNFORESEEABLE ACTS OR CIRCUMSTANCES WHICH CAUSE THE INADVERTENT
COMMUNICATION OF A NON-INCLUSIVE RATE PROVIDED THAT THE OPERATOR, UPON
BEING NOTIFIED OF THE EXISTENCE OF SUCH AN ERROR, PROMPTLY NOTIFY ANY
GUEST WHO HAS RESERVED THE RATE AND PROVIDE THEM WITH THE OPTION TO
REFUND THEIR RESERVATION WITHOUT PENALTY IN THE SAME AMOUNT AND TYPE OF
CONSIDERATION PAID.
7. ANY OPERATOR OF AN ACCOMMODATION WHO VIOLATES THE PROVISIONS OF
THIS SECTION SHALL BE LIABLE FOR A CIVIL PENALTY OF NOT LESS THAN ONE
THOUSAND DOLLARS, BUT NOT MORE THAN THREE THOUSAND DOLLARS, PER
VIOLATION.
8. ANY PERSON WHO IS INJURED BY AN OPERATOR WHO MAKES AN ADVERTISEMENT
OR SOLICITATION OUTSIDE THE STATE FOR AN ACCOMMODATION WITHIN THE STATE
THAT VIOLATES THE PROVISIONS OF THIS SECTION SHALL BE ENTITLED TO MAIN-
TAIN AN ACTION TO ENFORCE THE PROVISIONS OF THIS SECTION IN THE COURTS
OF THIS STATE FOR TREBLE DAMAGES IN THE ENTIRE AMOUNT OF THE GUEST'S
VISIT. WHERE THE VISIT WAS PAID FOR IN POINTS, THE PENALTY SHALL BE
TREBLE DAMAGES OF THE CASH VALUE OF THE POINTS AT THE TIME OF REDEMPTION
PROVIDED HOWEVER THAT WHERE THE POINTS HAVE NO REDEMPTION VALUE IN CASH,
TREBLE DAMAGES OF THE ADVERTISED RATE IN CASH AT THE TIME OF REDEMPTION
SHALL BE USED. WHERE THE VISIT WAS PAID FOR IN CREDIT, THE PENALTY
SHALL BE TREBLE DAMAGES OF THE EQUIVALENT AMOUNT IN CASH PROVIDED HOWEV-
ER THAT WHERE THE CREDITS HAVE NO EQUIVALENT VALUE IN CASH, TREBLE
DAMAGES OF THE ADVERTISED RATE IN CASH AT THE TIME OF REDEMPTION SHALL
BE USED. WHERE THE VISIT WAS PAID FOR IN OTHER CONSIDERATION, THE PENAL-
TY SHALL BE TREBLE DAMAGES OF THE EQUIVALENT AMOUNT IN CASH AT THE TIME
OF REDEMPTION. WHERE THE VISIT WAS PAID FOR IN A COMBINATION OF ANY OF
THE FOREGOING, THE PENALTY SHALL BE TREBLE DAMAGES IN ACCORDANCE WITH
THE FOREGOING PENALTIES.
A. 5926 3
9. NO AGREEMENT RELATING TO THE DETERMINATION OF CHOICE OF LAW, VENUE,
PERSONAL JURISDICTION, MANDATORY ARBITRATION OR THE WAIVER OF A CLASS
ACTION MADE PURSUANT TO THE RESERVATION, VISIT TO THE ACCOMMODATION, OR
ANOTHER AGREEMENT BETWEEN THE OPERATOR AND GUEST, WHETHER OR NOT SEPA-
RATE FROM THE RESERVATION OR VISIT, SHALL BE BINDING IN ANY ACTION
BROUGHT UNDER SUBDIVISION EIGHT OF THIS SECTION WHERE AN OPERATOR
VIOLATES THE PROVISIONS OF THIS SECTION.
10. ANY AGREEMENT RELATING TO THE WAIVER OF ANY PROVISION WITHIN THIS
SECTION SHALL BE VOID.
11. THIS SECTION SHALL NOT BE CONSTRUED AS HAVING ANY EFFECT ON ADVER-
TISEMENTS OR SOLICITATIONS FOR ACCOMMODATIONS LOCATED OUTSIDE THE STATE
OF NEW YORK.
§ 2. This act shall take effect on the ninetieth day after it shall
have become a law.