Stop Online Booking Scams Act of 2016

Stop Online Booking Scams Act of 2016

This bill amends the Restore Online Shoppers' Confidence Act (ROSCA) to prohibit a third party online hotel reservation seller (an online seller that is not affiliated with the person who owns the hotel or provides the hotel services or accommodations) from charging a consumer's credit card, debit card, bank account, or other financial account for any good or service sold in an Internet transaction, unless the seller discloses all material terms of the transaction.

Before the conclusion of the transaction, the seller must describe, and disclose the cost of, the offered good or service.

The seller must also disclose, in a manner that is continuously visible to the consumer throughout the transaction process, the fact that it is not affiliated with the person who: (1) owns the hotel, or (2) provides the hotel services or accommodations.

States may bring actions in federal courts to obtain damages, restitution, compensation, or other relief for ROSCA violations. (Currently, states may bring such actions for only injunctive relief.)

The Federal Trade Commission (FTC) must publish on its website an assessment of: (1) consumers' capacity to understand which company they are transacting with during online hotel reservation shopping, (2) consumer harm from such uncertainty, and (3) whether any practice by a third party online hotel reservation seller violates ROSCA.

The bill expresses the sense of Congress that the FTC should revise its website to make it easier for consumers and businesses to report complaints of deceptive practices with online booking of hotel reservations.