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HB 3173

FRAUD-HOTEL BOOKING SERVICE

104th Regular Session Introduced by Mary Gill and 2 co-sponsors

Requires third‑party hotel booking services to clearly disclose they are unaffiliated intermediaries before any offers or personal data is collected.

Rule 19(a) / Re-referred to Rules Committee
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Bill Summary · HB 3173

Summary — HB 3173 (Fraud — Hotel Booking Service)

Status: Introduced Feb 18–21, 2025; Rule 19(a) / Re-referred to Rules Committee. Companion: SB 1143. Effective date if enacted: January 1, 2026.

Purpose

Amends the Illinois Consumer Fraud and Deceptive Business Practices Act (815 ILCS 505) by making it an unlawful practice for third‑party hotel booking services to facilitate reservations for in‑state physical accommodations without providing specified, prominent disclosures to consumers. The intent is to ensure consumers know when they are dealing with an unaffiliated intermediary rather than booking directly with a hotel.

Key provisions

  • Adds Section 2HHHH to the Consumer Fraud Act requiring disclosures by third‑party hotel booking services.
  • Required disclosure content (must state):
    1. That the service is a third‑party booking service and not directly affiliated with the physical accommodation; and
    2. That the consumer is not directly making a reservation with the physical accommodation and the service is an unaffiliated intermediary.
  • Definitions:
    • “Third‑party hotel booking service” = online platform, website, phone/mobile app, call center, or service that facilitates reservations of accommodations in Illinois but is not directly operated by or affiliated with the physical accommodation. Does not include platforms operated or affiliated with the accommodation.
    • “Physical accommodation” = meaning of “hotel” under the Hotel Operators' Occupation and Tax Act.
  • Disclosure display requirements (must be “clear and conspicuous”):
    • Shown on the webpage/interface where the consumer books;
    • Presented before any offer/information about accommodations (e.g., top of search results or at start of a call);
    • Appears before consumer is asked to enter personal information;
    • Delivered via the same communication means used with the consumer (text, audio, etc.);
    • Not contradictory with other presented information.
  • “Clear and conspicuous” defined for text (size, color, contrast, location, duration) and audio (volume, speed, cadence).
  • Explicitly disallows disclosures that are hidden behind clicks/links, require hovering, or are buried only in long terms‑and‑conditions.

Who is affected

  • Covered: online travel agencies, metasearch sites, booking apps, call centers, and other third‑party intermediaries that book Illinois accommodations.
  • Not covered: booking channels operated by or affiliated with the hotel/physical accommodation.
  • Consumers benefit from clearer notice about booking relationships and potential implications (e.g., cancellation, refunds, customer service).

Enforcement and impact

  • Noncompliance is an unlawful practice under the Consumer Fraud Act, which allows enforcement by the Illinois Attorney General and private suits by consumers (including remedies such as injunctive relief, damages, and civil penalties as provided by the Act).
  • Practical impacts on covered businesses may include UI/UX changes, prominent in‑flow disclosures, revising phone scripts, and compliance reviews to avoid concealed or buried notices.

Legislative actions (brief)

  • Introduced Feb 18, 2025; referred through committees, public hearings, committee substitute issued and reported favorably; placed on General State Calendar; Rule 19(a) re‑referred to Rules Committee.

Compiled from official sources — confirm details with the bill’s official record.

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