AB 537: Short-term lodging: advertising: rates.

Existing law makes it unlawful for any owner or operator of a motel, motor court, or like establishment to post or maintain outdoor advertising signs relating to room rates that has any untrue, misleading, false, or fraudulent representations, and specified other requirements on outdoor signs for those establishments. Existing law also prohibits an owner or operator of a hotel or motel from increasing the hotel or motels rates upon the proclamation of a state of emergency by the President of the United States or the Governor or upon the declaration of a local emergency, as specified.

This bill would prohibit a place of short-term lodging, as defined, from advertising or offering a room rate that does not include all fees or charges required to stay at the short-term lodging except taxes and fees imposed by a government on the stay, as specified. The bill would also require a place of short-term lodging to include in the total price to be paid, before the consumer reserves a stay, all taxes and fees imposed by a government on the stay. The bill would make a violation of those provisions subject to a specified civil penalty not to exceed $10,000 and would authorize an action to enforce those provisions to be brought by a city attorney, district attorney, county counsel, or the Attorney General. The bill would make the bills provisions operative on July 1, 2024.