H.F. 2047 Section 1. NEW SECTION . 554J.1 Title. 1 This chapter may be cited as the “Iowa Junk Fee Prevention 2 Act” . 3 Sec. 2. NEW SECTION . 554J.2 Definitions. 4 As used in this chapter, unless the context otherwise 5 requires: 6 1. “Accommodations booking platform” means a business that 7 operates or provides an internet website, software application 8 for a mobile device, or other digital platform for the purpose 9 of searching for hotel rooms or homestays for consumers to 10 purchase. 11 2. “Consumer” means an individual that is a resident of or 12 traveling in this state. 13 3. “Covered entity” means an accommodations booking 14 platform, homestay platform, hotel platform, short-term lodging 15 platform, ticketing platform, food delivery platform, or any 16 other entity determined appropriate by the attorney general. 17 4. “Covered service” means any of the following: 18 a. Internet service. 19 b. Voice service, as defined in section 227(e)(8) of the 20 federal Communications Act of 1934, 47 U.S.C. §227(e)(8). 21 c. Commercial mobile service, as defined in section 332(d) 22 of the federal Communications Act of 1934, 47 U.S.C. §332(d). 23 d. Commercial mobile data service, as defined in section 24 6001 of the federal Middle Class Tax Relief and Job Creation 25 Act of 2012, 47 U.S.C. §1401. 26 e. A service provided by a multichannel video programming 27 distributor as defined in section 602 of the federal 28 Communications Act of 1934, 32 U.S.C. §522, to the extent that 29 the distributor is acting as a multichannel video programming 30 distributor. 31 f. Any other service offered or provided as part of a bundle 32 or package with any service described in this subsection. 33 5. “Food delivery provider” means a business that operates 34 or provides an internet website, software application for a 35 -1- LSB 5205YH (2) 91 nls/ko 1/ 6

H.F. 2047 mobile device, or other digital platform for the purpose of 1 facilitating the delivery of food and beverages to consumers. 2 The term shall not include direct delivery from a retail food 3 establishment or retail food facility. 4 6. “Homestay platform” means a business that operates or 5 provides an internet website, software application for a mobile 6 device, or other digital platform on which, in exchange for a 7 fee or other charge, an owner or lessee of a residential unit 8 or a room or space in a residential unit may advertise and 9 conduct a transaction for the rental of the unit or room or 10 space for the purposes of temporary lodging. 11 7. “Hotel platform” means a business that operates 12 a building or buildings in which the public may, for 13 consideration, obtain sleeping accommodations, excluding any 14 charitable, educational, or religious institution summer camps 15 for children, hospitals, or nursing homes, and that operates or 16 provides an internet website, software application for a mobile 17 device, or other digital platform for the purpose of renting 18 rooms for temporary lodging. 19 8. “Mandatory fee” includes any of the following: 20 a. A fee or surcharge that a consumer is required to pay to 21 purchase a good or service being advertised. 22 b. A fee or surcharge that is not reasonably avoidable. 23 c. A fee or surcharge for a good or service that a 24 reasonable consumer would not expect to be included with the 25 purchase of the good or service being advertised. 26 d. Any other fee or surcharge determined appropriate by the 27 attorney general. 28 9. “Short-term lodging” means any lodging that is offered 29 for an occupancy of less than six months. 30 10. “Ticketing platform” means a provider of a ticketing 31 service that sells tickets for an event or retains the 32 authority to otherwise distribute tickets for an event, whether 33 as a primary seller of tickets or in the secondary marketplace 34 for ticket sales. 35 -2- LSB 5205YH (2) 91 nls/ko 2/ 6

H.F. 2047 Sec. 3. NEW SECTION . 554J.3 Requirements for covered 1 entities. 2 1. A covered entity shall clearly and conspicuously 3 display, in each advertisement and whenever a price is first 4 shown to a consumer, the total price of the good or service 5 provided by the covered entity, including any mandatory fees a 6 consumer would incur during the transaction and the amount of 7 these fees shall not increase during the purchase process. 8 2. A covered entity shall not impose on a consumer or 9 advertise any mandatory fees that are excessive or deceptive 10 for any good or service offered by the covered entity. 11 3. If a good or service provided by a covered entity is 12 a ticket to a sporting event, theater, musical performance, 13 or an event at a place of public amusement of any kind, the 14 covered entity shall, not less than seventy-two hours prior to 15 the first public sale or presale of the ticket to a consumer, 16 clearly and conspicuously disclose to the public, including at 17 the point of sale, the total number of tickets offered for sale 18 by the covered entity or available for the given event. 19 4. A covered entity shall clearly and conspicuously 20 disclose any guarantee or refund policy prior to the completion 21 of a transaction by a consumer and, in the event of a refund, 22 shall provide a refund in the amount of the total cost of the 23 ticket, including any mandatory fees. 24 5. If a covered entity does not possess a ticket at the time 25 of the sale, the covered entity shall provide to a consumer 26 both of the following: 27 a. A clear and conspicuous notice that the covered entity 28 does not possess the ticket. 29 b. A full refund if the covered entity cannot provide the 30 ticket advertised to the consumer in a timely manner prior to 31 the event. 32 Sec. 4. NEW SECTION . 554HJ.4 Requirements for covered 33 services. 34 1. A provider of a covered service shall not charge a 35 -3- LSB 5205YH (2) 91 nls/ko 3/ 6

H.F. 2047 consumer a fee for, or impose a requirement that is excessive 1 or unreasonable on a consumer, for the early termination of a 2 covered service. 3 2. This section does not prevent a provider of a covered 4 service from charging a consumer for either of the following: 5 a. The cost of rental or loan equipment that is not returned 6 to the provider within a reasonable period of time. 7 b. The outstanding cost of a purchased device. 8 Sec. 5. NEW SECTION . 554J.5 Rulemaking —— enforcement. 9 1. The attorney general may adopt rules to implement this 10 chapter. 11 2. The attorney general may assess a civil penalty against a 12 person that violates this chapter, not to exceed five thousand 13 dollars for each violation. The proceeds of civil penalties 14 imposed pursuant to this subsection shall be deposited in the 15 general fund of the state. The attorney general may also take 16 other appropriate enforcement action, including ordering a 17 person to cease and desist from violating this chapter. 18 3. This chapter shall not apply to any owner, agent, or 19 employee of any radio or television station, or to any owner, 20 publisher, printer, agent, or employee of an internet service 21 provider, newspaper, or other publication, periodical, or 22 circular, who, in good faith and without knowledge of the 23 falsity or deceptive character thereof, publishes, causes 24 to be published, or takes part in the publication of such 25 advertisement. 26 EXPLANATION 27 The inclusion of this explanation does not constitute agreement with 28 the explanation’s substance by the members of the general assembly. 29 This bill relates to pricing disclosure of lodging, 30 ticketing, and food platforms. 31 The bill defines “covered entity” to mean an accommodations 32 booking platform, homestay platform, hotel platform, short-term 33 lodging platform, ticketing platform, food delivery platform, 34 or any other entity determined appropriate by the attorney 35 -4- LSB 5205YH (2) 91 nls/ko 4/ 6

H.F. 2047 general. The bill requires a covered entity to clearly and 1 conspicuously display, in each advertisement and whenever a 2 price is first shown to a consumer, the total price of the 3 good or service provided by the covered entity, including any 4 mandatory fees. The bill provides that mandatory fees cannot 5 be increased during the purchase process. The bill prohibits 6 a covered entity from imposing any mandatory fees that are 7 excessive or deceptive for any good or service offered. The 8 bill provides for ticket sales by covered entities to sporting 9 events, the theater, musical performances, and other events, 10 the covered entity shall within 72 hours of the first public 11 sale or presale of tickets to the event disclose to the public, 12 including at the point of sale, the total number of tickets 13 offered for sale. The bill requires a covered entity to 14 clearly and conspicuously disclose any guarantee or refund 15 policy prior to the completion of a transaction and in the 16 event of a refund, shall provide a refund amount of the total 17 cost of the ticket, including any mandatory fees. The bill 18 also provides for disclosures for covered entities engaged in 19 speculative ticketing. 20 The bill defines a “covered service” to mean (1) an internet 21 service, (2) a voice service, (3) a commercial mobile service, 22 (4) a service provided by a multichannel video programming 23 distributor, and (5) any other service offered or provided as 24 part of a bundle or package with any of the services described 25 above. The bill provides that a provider of a covered 26 service shall not charge an consumer an early termination fee. 27 However, a provider of a covered service may charge a consumer 28 for the cost of rental or loan equipment that is not returned 29 to the provider within a reasonable period of time or the 30 outstanding cost of a purchased device. 31 The bill allows the attorney general to adopt rules to 32 implement the bill. The attorney general may impose a civil 33 penalty of not more than $5,000 per violation against a person 34 who violates the provisions of the bill. Any collected civil 35 -5- LSB 5205YH (2) 91 nls/ko 5/ 6

H.F. 2047 penalties are to be deposited in the general fund of the state. 1 In addition to a civil penalty, the attorney general may order 2 a person to cease and desist from violating the provisions of 3 the bill. 4 The bill does not apply to any owner, agent, or employee of 5 any radio or television station, or to any owner, publisher, 6 printer, agent, or employee of an internet service provider, 7 newspaper, or other publication, periodical, or circular, who, 8 in good faith and without knowledge of the falsity or deceptive 9 character thereof, publishes, causes to be published, or takes 10 part in the publication of such advertisement. 11 -6- LSB 5205YH (2) 91 nls/ko 6/ 6