Those hidden fees you see at the end of your dinner bill or during the purchase of a concert ticket is now a thing of the past under this new California law.
Starting this July 1, 2024, California enforces Senate Bill 478 (SB478), pioneering a stringent stance against hidden fees in consumer transactions. This landmark legislation mandates that restaurants and businesses integrate all charges into advertised prices, prohibiting the imposition of separate surcharges. It also mandates clear guidelines for how prices are communicated, aiming to empower consumers with accurate cost information upfront. This move is expected to set a precedent for other states grappling with similar consumer protection issues.
“California is eliminating hidden fees,” said Attorney General Rob Bonta in a press release. “These deceptive fees prevent us from knowing how much we will be charged at the outset. They are bad for consumers and bad for competition. They cost Americans tens of billions of dollars each year. They hit families who are just trying to make ends meet the hardest. And, because a growing list of websites, apps, and brick-and-mortar businesses are using them, they penalize companies that are upfront and transparent with their prices. With the signing of SB 478, California now has the most effective piece of legislation in the nation to tackle this problem. The price Californians see will be the price they pay. I am deeply grateful to Senators Dodd and Skinner, the authors of SB 478, for their commitment to protecting consumers.”
Governor Gavin Newsom signed it into law at the end of last year marking a significant step in addressing the issue of hidden fees that have long plagued industries such as travel, live events ticketing, restaurants, and food delivery services. This move comes as a measure to enhance transparency, ensure fair pricing practices for consumers, and regulate how prices are advertised, displayed, or offered.
You can read more on Senate Bill 478 (SB478) in depth here.