Bill to Ban Hidden Fees in California Signed into Law
Press release from California Attorney General Rob Bonta:
California Attorney General Rob Bonta today issued a statement in response to Senate Bill 478 (SB 478), a bill that he sponsored, being signed into law by Governor Gavin Newsom. Coauthored by Senator Bill Dodd (D-Napa) and Senator Nancy Skinner (D-Berkeley), the legislation will prohibit hidden fees (also called ‘junk fees’) in California beginning on July 1, 2024. Hidden fees are fees in which a seller uses an artificially low headline price to attract a customer and usually either discloses additional required fees in smaller print, or reveals additional unavoidable charges later in the buying process.
“Today, California is eliminating hidden fees,” said Attorney General Rob Bonta. “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.”
“With the governor’s signing of this historic bill, we can finally take aim at dishonest junk fees that are tacked onto seemingly everything – from online concert tickets to hotel reservations,” said Senator Bill Dodd. “Now we can put the consumer first and create a level playing field for those businesses that advertise the real price, up front. I appreciate everyone who worked to end these dishonest charges that boost corporate profits at the expense of those who can least afford it.”
“California sent a clear message today: The days of bait-and-switch pricing practices are over,” said Senator Nancy Skinner. “With Gov. Newsom’s signing of SB 478, Californians will know up front how much they’re being asked to pay, and no longer be surprised by hidden junk fees when buying a concert or sports ticket or booking hotel rooms for their family vacation.”
After announcing that he was sponsoring SB 478 in February 2023, Attorney General Bonta urged the California Legislature to approve the legislation in March 2023, heeding the call from the Biden-Harris Administration and the Consumer Financial Protection Bureau for states to better address the nationwide concern of hidden fees. In May 2023, he held a press conference in San Diego to highlight the bill’s importance.
Deceptive price advertising is a significant problem facing consumers that appears to be proliferating in more and more sectors of the economy. Hidden required fees are now charged for a variety of goods and services, such as lodging, tickets for live events, and restaurants and food delivery. These fees, when mandatory, are a deceptive way of hiding the true price of a good or service.
The text of the legislation is available here.
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Probably doesn’t apply to utilities or phone since a lot of those surprise fees are the government’s.
Hell, go look at a new Toyota, Honda etc…
Toyota Dealers want $10,000 extra, to sell you a car, and a Honda Accord has to “reserved”, and even a used car will be packed with stuff they want to charge you for, that wasn’t advertised…
Go ahead and try to charge me a “hidden fee”… See what happens.
Any chance of getting a bill to ban hidden pay increases for lawmakers?
They’re not hidden.
LOL Of course they do. “This one is history but for sheer farce it still can’t be beat. “In 2012, Jesse Jackson, Jr. (D-IL) was approved for $138,400 in worker’s compensation and Social Security disability payments stemming from his bipolar disorder and depression. Jackson successfully argued that Congress made him mentally ill.”
“OTHER PERKS: The pin – which gets members around the lines; the license plate – which allows free parking sometimes in illegal zones; 72-percent subsidized health insurance; a $25 per month on-site Capitol Hill gym membership with a swimming pool, sauna, steam room, and paddleball.
There is an onsite beauty salon and member dedicated subway to shuttle members around the Hill. Taxpayers spent $10MM over the last five-years on elevator doormen whose job it is to hit the buttons and hold doors.
Furthermore, Congress exempted themselves from certain federal laws, i.e. the Freedom of Information Act, safety and health investigatory subpoenas, protections against retaliation for whistleblowers, etc.
Members also have a dedicated settlement fund to get them out of hot water administered through the Office of Compliance. Monies from this fund are paid to settle workplace disputes on Capitol Hill. Since 1997, settlements totaling $17.6 million from 275 cases had an average settlement payout of $63,973. In 2018, ten cases were settled for a total payout of $338,816. ”
And then there’s the pay from universities and colleges, the paid trips to speak, etc etc etc
https://www.forbes.com/sites/adamandrzejewski/2020/05/29/perks-members-of-congress-give-to-themselves–the-selfie-report/?sh=4b14b296270f
California when I have time.
People need to look into the fine print on their 401(k). You will be surprised.
Does this apply to tips, too?
Does this cover all the fees added to a traffic citation? They can triple the cost of a simple ticket…
Buy them a mirror. The state loves to impose hidden fees. Gasoline, cigarettes, cellphone and electricity to name a few.
Don’t forget The deposit we pay on containers.
So, now when we give a price we have to include the California sales tax in the final price?
Now you have to try and calculate all of California hidden taxes , otherwise YOU are penalized. More money for that poor broke politician