California Attorney General Rob Bonta has issued a statement and information for consumers following the implementation of Senate Bill 478 (SB 478) on July 1, 2024. SB 478, also known as the "Honest Pricing Law" or "Hidden Fees Statute," mandates that businesses must include all required fees or charges in their advertised prices, excluding certain government taxes and shipping costs.
Attorney General Bonta emphasized the importance of this new law for consumers: “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." He added that SB 478 ensures clear communication with consumers so they can make informed financial decisions. "This summer, enjoy California — without the hidden fees,” he stated.
The law does not affect what businesses can charge but requires transparency in pricing by including all mandatory charges upfront. Restaurants, bars, and select food vendors are exempt from these requirements if they clearly display any additional fees on their menus (per SB 1524 effective June 29, 2024).
Data from Consumer Reports in 2018 indicated that at least 85% of Americans had 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 price hikes by as much as 30% to 40%. The Honest Pricing Law aims to provide consumers with accurate information upfront for better price comparison and fosters an equitable marketplace.
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 under the Consumer Legal Remedies Act’s existing notice process. The authorities exercise discretion in pursuing investigations or enforcement actions based on whether businesses acted in good faith or provided restitution for unintentional violations.
Consumers noticing hidden fees are encouraged first to discuss compliance directly with businesses. Observations of potential violations can be reported at oag.ca.gov/report.
For further details about SB 478, visit the Attorney General's web page.