SB2013eng 104TH GENERAL ASSEMBLY

SB2013 Engrossed LRB104 10262 SPS 20336 b

AN ACT concerning business.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Stop Online Booking Scams Act.

Section 5. Definitions. As used in this Act:

"Affiliation contract" means a contract between an online platform and (i) the owner of the physical accommodation, (ii) the entity that operates the physical accommodation, (iii) the franchisor of the physical accommodation, or (iv) any entity authorized to enter into contracts for online booking services on behalf of the owner, operator, or franchisor.

"Exhibition organizer or meeting planner" means the person responsible for all aspects of planning, promoting, and producing a meeting, conference, event, or exhibition, including overseeing and arranging all physical accommodation reservation plans and contracts for the meeting, conference, event, or exhibition.

"Online platform" means a website, mobile application, call center, service, artificial intelligence system, automated agent, or functionally similar technology that facilitates the reservation or booking of physical accommodations.

"Physical accommodation" has the meaning given to the term "hotel" in the Hotel Operators' Occupation Tax Act.

"Shared hotel brand" means an identifying trademark that a hotel operator is expressly licensed to operate under in accordance with the terms of a hotel franchise or management agreement.

"Third-party hotel booking website" means an online platform that facilitates the reservation or booking of physical accommodations in this State for consumers that is not directly affiliated with the physical accommodation being reserved or booked. "Third-party hotel booking website" does not include:

(1) an online platform that is operated under a shared hotel brand;

(2) an online platform that facilitates the reservation or booking of physical accommodations by connecting consumers to operators and owners of rental properties, hotels, motels, or other short-term accommodations, if the online platform has an affiliation contract for the physical accommodation for which the online platform is facilitating bookings; or

(3) an exhibition organizer or meeting planner or the official housing bureau for a meeting, conference, event, or exhibition held at the physical accommodation.

Section 10. Requirements for third-party hotel booking websites. A third-party hotel booking website shall not facilitate the reservation or booking of physical accommodations in this State without clearly and conspicuously disclosing to the consumer that:

(1) the third-party hotel booking website is a third-party booking service and is not directly affiliated with the physical accommodation; and

(2) the consumer is not directly making a reservation or booking with the physical accommodation itself and the third-party hotel booking website functions as an unaffiliated intermediary for the transaction.

Section 15. Placement of disclosure.

(a) The disclosure required under Section 10 shall be displayed in a clear and conspicuous manner on the webpage or interface where the consumer selects physical accommodations for reservation or booking and shall appear first in any search results. A disclosure is not clear and conspicuous if a consumer must take any action to see it, such as clicking on a hyperlink or hovering over an icon.

(b) The disclosure shall appear prior to the entry of any personal data and shall be separate from any general terms and conditions or legal disclaimers.

(c) In any oral communication with a consumer, the disclosure shall be communicated before any offer or information regarding the physical accommodation.

Section 20. Prohibition on terms and conditions exclusivity. The disclosure required under Section 10 shall not be included solely in the third-party hotel booking website's general terms and conditions or in any other section of the website that requires the consumer to click through multiple links or read extensive legal text.

Section 25. Enforcement under the Consumer Fraud and Deceptive Business Practices Act. The Attorney General may enforce violations of this Act as an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act. All remedies, penalties, and authority granted to the Attorney General by that Act shall be available to the Attorney General for the enforcement of this Act.

Section 30. The Consumer Fraud and Deceptive Business Practices Act is amended by adding Section 2MMMM as follows:

(815 ILCS 505/2MMMM new)

Sec. 2MMMM. Violations of the Stop Online Booking Scams Act. A person who violates the Stop Online Booking Scams Act commits an unlawful practice within the meaning of this Act.

Section 99. Effective date. This Act takes effect January 1, 2027.