Golden State Today

California Attorney General Rob Bonta has issued a statement and provided information for consumers following the implementation of Senate Bill 478 (SB 478) on July 1, 2024. SB 478 mandates that businesses must include all required fees or charges in their advertised prices, excluding certain government taxes and shipping costs. Known as the “Honest Pricing Law” or “Hidden Fees Statute,” this legislation does not alter the actual price businesses can charge but ensures that listed prices reflect all mandatory charges.

Certain food vendors, including restaurants and bars, are exempt from SB 478's requirements if the fees are clearly displayed on menus, as stipulated by SB 1524 effective June 29, 2024.

Attorney General Bonta emphasized the benefits of this law: "From the beautiful cliffs and seaside towns of Mendocino to the bustling beaches of San Diego, I, like many Californians, will explore and enjoy all our great state has to offer this summer. Only this year, Californians won't have to worry about hidden fees at checkout," said Bonta. "SB 478 ensures clear and honest communication with consumers so we can make financial choices that are best for us and our families."

Consumer Reports data from 2018 indicates that at least 85% of Americans have encountered hidden or unexpected fees for services. More than two-thirds surveyed in 2023 reported paying more in surprise charges compared to five years earlier. Hidden fees can significantly increase costs; for instance, live event tickets may see a price hike of up to 30% to 40%. SB 478 aims to provide consumers with accurate pricing information upfront, fostering an equitable marketplace where businesses compete fairly.

The enforcement of SB 478 falls under the jurisdiction of the Attorney General’s office, District Attorneys, certain City Attorneys, County Counsels, and through private litigation subject to existing notice processes under the Consumer Legal Remedies Act. The authorities exercise discretion when deciding whether to pursue investigations or enforcement actions based on good faith efforts by businesses to comply with the law or instances where restitution has been made for unintentional violations.

Consumers who notice hidden fees are encouraged first to address their concerns directly with businesses. Observations of potential violations can be reported via oag.ca.gov/report.

For more details on SB 478, visit the Attorney General’s web page.