Californias New Pricing Laws Are In Effect Are You In Compliance

California's Hidden Fees Law Takes Effect July 1, 2024

New Law Aims to Tackle Surge of Hidden Fees

SB 478 will prohibit businesses from adding unexpected fees to bills

In October 2023, California passed SB 478, an amendment to the Consumers Legal Remedies Act. Beginning July 1, 2024, the Honest Pricing Law, or Hidden Fees Statute, will go into effect. This law aims to tackle the surge of hidden fees that are added to Californians' bills at the very end of a transaction. SB 478 will require businesses to disclose all fees upfront, before consumers commit to a purchase. This includes fees for things like surcharges, convenience fees, and delivery charges. Businesses that violate this law could be subject to fines of up to $2,500 per violation. Without waiting for new federal laws or federal regulators to take action against drip pricing, California is leading the way in protecting consumers from this unfair practice. California's self-proclaimed most effective in the nation ban on drip pricing goes into effect on July 1, 2024. On July 1, 2024, SB 478 Hidden Fees Statute will go into effect, requiring businesses to publish all fees associated with a product or service before a consumer makes a purchase. This includes fees for things like taxes, shipping, and handling. California's new Hidden Fees Statute, SB 478, is effective July 1, 2024, and will generally ban so-called "drip pricing," the practice of adding unexpected fees to a purchase at the very end of the checkout process. The new law is expected to have a significant impact on businesses that currently rely on hidden fees to boost their profits. It is also expected to provide consumers with greater transparency and protection when making purchases.