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Committee adopts federal‑compliance clause in price‑transparency bill after debate on restitution and preemption
Summary
The committee passed SB 2031 with an amendment deeming businesses compliant with a specific FTC all‑in pricing rule as compliant with the state section, after debate between the Office of Consumer Protection (which sought stronger state remedies and restitution) and industry groups seeking alignment with federal rules.
The House Committee on Consumer Protection and Commerce on March 31 passed SB 2031 (SD2), which would make it an unfair or deceptive practice for businesses to display or advertise a price for live events or short‑term lodging without conspicuously disclosing the total price and any fees. The committee adopted an amendment proposed by the hotel industry to include a compliance provision: offers or displays that comply with the Federal Trade Commission's all‑in pricing rule would be deemed compliant with the state section.
William Bory Hardy, executive director of the Office of Consumer Protection, told the committee the bill maps a 2025 Federal Trade Commission rule requiring covered businesses to show the total price; mapping that rule into state law would unlock state enforcement powers and state remedies, including restitution for Hawaii residents. Hardy warned that treating federal compliance as dispositive could limit state enforcement and restitution rights, which he described as important because the Federal Trade Commission lacks the authority to obtain restitution for Hawaii residents in light of recent Supreme Court decisions referenced in his testimony.
Industry witnesses argued alignment with federal rules would reduce compliance burdens and increase regulatory certainty. Marvin Dang of the Hawaii Financial Services Association sought a limited exemption for credit‑card issuers that rely on third‑party fee data, saying issuers could be intermediaries who make good‑faith disclosures based on supplier information.
After extended questioning on whether a state exemption would be preempted by federal rules and whether federal conformity would foreclose state remedies, the committee adopted the hotel association's amendment and passed the measure with amendments. The committee's action ensures businesses that comply with the FTC rule are treated as complying with the state provision while leaving the state enforcement mechanism intact on its face.
