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SB2031
THE SENATE
S.B. NO.
2031
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII
A BILL FOR AN ACT
relating
to consumer protection
.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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SECTION 1.
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The legislature finds that, as the cost of
living continues to increase in the State, it is necessary for the State to
intervene in markets where retailers and goods and services providers are
treating consumers unfairly.
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The ability
to identify the price of a good or service is a necessity for a properly
functioning economy.
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Consumers look for
prices to comparison shop and to weigh what a good or service might be
worth.
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Most consumers rely on price
information to answer critical questions around how much they are able to spend
and save, and how they will meet their basic needs and those of their families.
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The
legislature also finds that consumers increasingly face widespread and growing
unfair and deceptive fee practices that make it harder to identify how much
something will ultimately cost.
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Unfortunately, the Internet and the ability to purchase goods or
services online have only exacerbated the practice of charging mandatory junk
fees that are not disclosed until after the transaction begins.
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The practice of charging junk fees and other
undisclosed mandatory costs is called "drip pricing".
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Drip pricing is most prevalent in practices
involving fees for live-event tickets and short-term lodging and other places
of temporary sleeping accommodations, such as hotels, motels, inns, short-term
rentals, and vacation rentals.
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The
legislature further finds that according to the Federal Trade Commission, in
the last few years alone, tens of thousands of Americans have expressed
displeasure upon discovering the cost of their hotel stays were significantly
higher than expected due to hidden resort fees and other mandatory charges in
addition to the advertised price.
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Consumers have also complained about purchasing tickets to a live-event
online and finding out that the quoted ticket price had almost doubled by the
time they reached the final checkout page.
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Consumers have confronted a host of mysterious, mandatory charges
labeled as "convenience", "processing", or
"service" fees that are nondescriptive and confusing.
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These practices are frustrating for consumers
when they shop for travel and entertainment, especially because these purchases
can represent significant expenditures to their already strained finances.
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The
legislature additionally finds that the Federal Trade Commission issued a final
rule on January 10, 2025, to address certain unfair or deceptive practices
involving fees or charges for live-event tickets and short-term lodging.
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This final rule serves as a guidance for the
State to enhance its consumer protection laws and allow consumers to make
better informed decisions when purchasing live-event tickets or deciding where
to stay on a short-term basis by leveling the playing field for honest
businesses in these industries that truthfully and transparently disclose their
pricing information.
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Accordingly,
the purpose of this Act is to make it an unfair or deceptive act or practice
for businesses to:
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(1)
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Offer, display, or advertise the price
of live-event tickets or short-term lodging without clearly and conspicuously
disclosing the total price as prominently or more prominently than other
pricing information, except the final amount of payment; and
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(2)
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isrepresent any fees or charges in any
offer, display, or advertisement for the sale of live-event tickets and
short-term lodging.
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SECTION
2.
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Chapter 481B, Hawaii Revised
Statutes, is amended by adding a new section to part I to be appropriately
designated and to read as follows:
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�481B-
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Live-event
tickets; short-term lodgings; total price; disclosure required; prohibited.
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(a)
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It shall be an unfair or deceptive practice in violation of section
480-2 and a violation of this part for any business to offer, display, or
advertise any price of a covered good or service without clearly and conspicuously
disclosing the total price.
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(b)
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In any offer, display, or advertisement that
represents the price of a covered good or service, a business shall disclose
the total price more prominently than any other pricing information; provided
that when the final amount of payment for the transaction is displayed, the
final amount of payment shall be disclosed more prominently than, or as
prominently as, the total price.
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(c)
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A business shall disclose clearly and
conspicuously, before the consumer consents to pay for any covered good or
service:
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(1)
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The nature, purpose, and amount of
any fee or charge imposed on the transaction that has been excluded from the
total price and the identity of the good or service for which the fee or charge
is imposed; and
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(2)
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The final amount of payment for the
transaction.
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(d)
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For purposes of meeting the clearly and conspicuously
requirements under subsection (c):
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(1)
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In
any communication that is solely visual or solely audible, the disclosure shall
be made through the same means through which the communication is presented.
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In any communication made through both visual
and audible means, such as a television advertisement, the disclosure shall be
presented simultaneously in both the visual and audible portions of the
communication even if the representation requiring the disclosure is made in
only one means;
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(2)
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A visual disclosure, by its size,
contrast, location, the length of time it appears, and other characteristics, shall
stand out from any accompanying text or other visual elements so that the
visual disclosure is easily noticed, read, and understood;
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(3)
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An audible disclosure, including by
telephone or streaming video, shall be delivered in a volume, speed, and
cadence sufficient for ordinary consumers to easily hear and understand the
audible disclosure;
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(4)
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In any communication using an
interactive electronic medium, such as the Internet, a mobile application, or
software, the disclosure shall be unavoidable;
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(5)
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The disclosure shall use diction and
syntax understandable to ordinary consumers and shall appear in each language
in which the representation that requires the disclosure appears;
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(6)
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The disclosure shall comply with
these requirements in each medium through which the disclosure is received,
including all electronic devices and face-to-face communications; and
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(7)
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The disclosure shall not be
contradicted or mitigated by, or inconsistent with, anything else in the
communication;
provided
that when the representation or sales practice targets a specific audience,
such as children, older adults, or the terminally ill, members of that group
shall be considered ordinary consumers.
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(e)
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In any offer, display, or advertisement for a
covered good or service, it shall be an unfair or deceptive act or practice in
violation of section 480-2 and a violation of this part for any business to
misrepresent any fee or charge, including but not limited to:
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(1)
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The nature, purpose, amount, or
refundability of any fee or charge; and
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(2)
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The identity of the good or service
for which the fee or charge is imposed.
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(f)
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As used in this section:
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"Ancillary
good or service" means any additional goods or services offered to a
consumer as part of the same transaction.
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"Business"
means a person that offers goods or services, including but not limited to
online, in mobile applications, or at physical locations.
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"Clearly
and conspicuously" means a required disclosure that is easily noticeable
(i.e., difficult to miss) and easily understandable by ordinary consumers.
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"Covered
good or service" means:
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(1)
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Live-event tickets; or
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(2)
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Short-term lodging, including
temporary sleeping accommodations at a hotel, motel, inn, short-term rental,
vacation rental, or other place of lodging.
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"Government
charges" means the fees or charges imposed on the transaction by a
federal, state, tribal, or local government agency, department, or unit.
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"Pricing
information" means any information relating to an amount that a consumer
may pay.
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"Shipping
charges" means the fees or charges that reasonably reflect the amount a
business incurs to send physical goods to a consumer, including through the
United States Postal Service, private mail and shipping services, or by
freight.
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"Total
price" means the maximum total of all fees or charges that a consumer
shall pay for any good or service and any mandatory ancillary good or service;
provided that government charges, shipping charges, and fees or charges for any
optional ancillary good or service may be excluded.
"
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SECTION
3.
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This Act does not affect rights and
duties that matured, penalties that were incurred, and proceedings that were
begun before its effective date.
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SECTION
4.
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New statutory material is
underscored.
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SECTION
5.
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This Act shall take effect upon its
approval.
INTRODUCED BY:
_____________________________
Report Title:
Consumer
Protection; Unfair or Deceptive Acts or Practices; Live-Event Tickets;
Short-Term Lodging; Disclosures; Total Price; Junk Fees
Description:
Makes it
an unfair or deceptive act or practice for businesses to: offer, display, or
advertise the price of live-ticket events or short-term lodging without clearly
and conspicuously disclosing the total price; and misrepresent any fees or
charges in any offer, display, or advertisement for the sale of live-event
tickets or short-term lodging.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.