Ah, it's a Prepaid reservation. You never mentioned that before (in the Club Carlson thread).
I've never gotten charged for the frequent traveler fee when using a hotel program yet, but then I've never ever used a Prepaid rate.
And very few people here have (when earning hotel points or airline miles), I think.
That line doesn't even appear on a non-prepaid rate, does it? (On non-prepaid rates, I'm just used to seeing a general statement about "frequent flyer fee may be assessed".)