Federal Commerce Commission: Guide for hotels

What is the Federal Trade Commission?

The Federal Trade Commission is an independent agency of the United States government which strives to ensure economic competition between businesses and to protect consumers from unjust practices. Also known as FTC, the agency has its headquarters in Washington, DC and IS Directed by five commissioners, who generally serve seven -year mandates, decided by the president and confirmed by the Senate.

The history of the Federal Trade Commission dates back to 1914 when it was initially established by the Federal Trade Commission Act.

What is the Federal Trade Commission doing?

The Federal Trade Commission monitors and applies antitrust laws and consumer protection laws. This covers questions such as false advertising, scams, fraud, identity theft, debt collection, privacy, etc.

When violations are found, the FTC has the power to file prosecution, put the orders to stop and abstain and distribute fines.

For example, the FTC can ensure that hotels do not create false messages or promising in their marketing – with regard to equipment, services or prices.

What is the law on the Federal Commerce Commission?

The Federal Commercial Commission law is the official law which has helped to establish the Federal Trade Commission. He describes the powers and responsibilities of the FTC. Its objective was mainly to prevent unfair or misleading acts and practices when it comes to competing as a business or providing consumers.

This blog will give you a complete overview of how the Federal Trade Commission plays a role in the way hoteliers in the United States manage their business.

Why is it important that the Federal Trade Commission serves its objective?

The objective of the Federal Trade Commission is important in the major scheme of consumer legislation and protection. Not only does this work to prevent negative practices of companies, but it also helps consumers to detect, stop and avoid these negative practices.

The FTC doing its job and making companies responsible for their actions, consumers can approach various markets with more confidence and security, ultimately benefiting the real companies that do the right thing.

Here is an overview of the reason why the FTC is so vital:

• Fraud and prevention of the scam To protect people financially and avoid emotional distress.
• Ensure a truthful advertising To give consumers a specific report of what a business is and what it does.
• Maintain privacy as the protection of personal information and data.
• Prevent anti -competitive practices such as price manipulation or the creation of unfair monopolies to create a level playground.
• Build consumer confidence To encourage economic stimulation.
• Encourage innovation by encouraging companies to develop new products and services for better and best products.
• Protect vulnerable populations Like the elderly, children and low -income individuals, who can be more sensitive to misleading practices.

Facts of the Federal Commerce Committee

If the rules and regulations seem to be dry subjects to discuss, it becomes more interesting when we examine some of the facts on this main government agency.

Here are five facts from the Federal Trade Commission which distinguishes it:

• It is the only federal agency that oversees both Consumer protection and commercial competition competence.

• The FTC also manages the national call register of calls not in America.

• The agency now has more than 100 years of history protecting consumers.

• The FTC employs economists to analyze market trends, to inform it of the impact of regulations.
• It deals in cases with large and small scale, also helping at consumers to give people the tools to detect and prevent scams and fraud.

However, the most interesting thing about the FTC is how it could have an impact on your hotel. Let’s discuss this in the next section.

FTC and unwanted costs of the hotel

Perhaps the biggest example of how the Federal Trade Commission affects hotels recent news that the FTC has prohibited hidden waste Hotels and event tickets.

Malbunary costs, or hidden costs, are compulsory costs but not necessarily announced in advance. For example, this can apply when consumers buy tickets for a live event – or when booking a hotel.

The price announced will be an amount, but the amount that the guest is required to pay changes later when a hidden load, such as cleaning costs or reservation costs, is applied to the account.

Under the FTC decision, companies will have to display with precision, clearly and obviously all the compulsory costs associated with the product or service offered.

There are four specific prohibitions under the decision, and companies will be punished for:

• Do not disclose “clearly and obviously” the “real total price, including all compulsory costs” billed each time a company “offer (s), display (s) or announces a price”.
• Do not display the total “more important” price than “most other information on prices”.
• Define the cost or costs for live event tickets or short -term accommodation.
• Define the identity of any good or service offered.

It should be noted that the decision is purely a stipulation that companies must disclose their costs and how they are displayed – it does not control what costs are billed or the amount of the costs that the guest or the customer is required to pay.

In the end, it is a question of ensuring that consumers have everything they need to make an informed decision to buy – or not.

List of hidden hotel costs

Although not all of them are applicable to the recent FTC decision, there are a number of hidden costs that hotels sometimes use – that customers do not take goodness.

Here are a few to keep in mind when listing your prices and terms and conditions:

• Station fees: Basic stations will often charge costs for all their various amenities and services – but customers have sometimes found that these costs are applied even for the amenities they did not use during their stay.
• Registration fees: Guests will often be additional invoiced for early recording or late departure, but it is important to let them know that this will be the case when they reservation or when they request the service.
• Additional occupation costs: Customers who bring additional adults to stay in their room will be charged additional person fees by many hotels.
• Wi-fi: It is one of the greatest troubles for guests. They just don’t want to be billed for Wi-Fi and do not expect to be, but some hotels will always do.
• Mini-bar and snack bar: Most guests know that these items will lead to fees, but some guests have been indignant to find that they were billed even without consuming anything. Indeed, some refrigerators contain sensors that detect movement and assume that an element has been consumed if it is picked up.
• Parking Fee: Again, most customers would expect to pay for parking, but it is important to let them know in advance that it will happen and how much it will cost.
• Gym: This is probably belonging to the Station costs category. If a guest does not use gymnasium equipment, it does not just seem to be billed for his maintenance and maintenance.
• Housekeeping: Sometimes there will be cleaning costs that customers do not know, which means that if they leave their housekeeper a tip, they will pay effectively twice.
• Mail fees: Customers staying for a long time can have mail delivered to their hotel, and certain properties are known to invoice customers for accepting this letter in the premises.

Other examples of the Federal Trade Commission for hotels

If the properties have fallen against this new decision, it will not be the first time that the FTC has attracted hotels to undertake incorrect practices.

Here are some other examples of the FTC to act:

Data security

The FTC has historically filed prosecution against Marriott and Wyndham for having failed to implement reasonable data respectively and not adequately protect computer networks respectively.

False criticism

The FTC has specific guidelines covering online criticism, and hotels must be cautious. False criticisms are an obvious poor practice, but encourage positive criticism without revealing what is incentive.

Accessibility

The FTC also consider accessibility Within the framework of its broad mandate, although these regulations are often applied under the Americans Act with disabilities.

FTC browse and how to manage it at your hotel

The application of the FTC can lead to prosecution against your hotel if they find that you have violated their decisions. This can lead to significant fines and a loss of reputation – ultimately harming your business in the long term.

To make sure you are on the right side of the legislation and to provide a Exceptional customer experiencemake sure you:

• Understand the FTC areas of intervention: This comes down to being truthful in your advertisement, providing adequate data security to your guests, to undertake fair pricing practices and to be accessible to all.
• Be proactive: Do not wait for the FTC to hit or that a guest gives you bad comments. Try to make sure you have internal processes to make sure you comply with the FTC known guidelines.
• Stay informed: Keep in front of the FTC announcements and media to make sure you don’t miss new decisions that will affect you.
• Cooperate fully: If the FTC comes into contact with you, be sure to work with them in addition to looking for a legal advisor and conducting your own internal surveys.

Although it may seem complicated, there are easy ways to manage customer prices, costs and communications in your hotel …