California’s Crackdown on Hidden Restaurant Fees A Guide for Travelers

California's Crackdown on Hidden Restaurant Fees A Guide for Travelers - Transparency Triumphs - California's Bold Move Against Hidden Fees

California has enacted a new law, SB 478, which requires businesses to include all mandatory fees and charges in the advertised price, with limited exceptions.

The "Honest Pricing Law" aims to enhance transparency and protect consumers from hidden fees that can significantly impact the final cost.

The Attorney General's Office has provided guidance to help businesses comply with the new requirements, which go into effect on July 1, 2024.

The new law in California, SB 478, mandates that businesses must include all required fees and charges in the advertised price, with a few exceptions.

This represents a significant shift from the previous practice of allowing hidden fees to be added at the end of a transaction.

According to the Attorney General's guidance, businesses are now required to clearly disclose any mandatory fees, such as facility fees or service charges, upfront in the advertised price.

This eliminates the element of surprise for consumers who would otherwise be faced with unexpected costs.

Interestingly, the law does not apply to government taxes or shipping costs, which can still be presented separately from the base price.

This acknowledges the variable nature of these charges and the challenges in including them in the initial listing.

One unique aspect of SB 478 is the inclusion of a provision that prohibits businesses from advertising a price that is lower than the final cost the consumer will pay, even if the hidden fees are disclosed later in the purchasing process.

This ensures true upfront price transparency.

The law's enforcement mechanism includes civil penalties of up to $2,500 per violation, providing a strong incentive for businesses to comply with the new transparency requirements.

This is a significant financial deterrent compared to previous regulations.

Interestingly, the law applies to a wide range of industries, including restaurants, cruise lines, and retail stores.

This comprehensive approach aims to create a level playing field and ensure consistent pricing practices across different sectors.