As we blogged about late last year, beginning July 1, 2024, California's "Honest Pricing Law" or "Hidden Fees Statute," SB 478 makes it illegal to advertise, display or offer a price for a good or service that does not include all mandatory fees or charges other than either of the following: (i) Taxes or fees imposed by a government on the transaction; or (ii) Postage or carriage charges that will be reasonably and actually incurred to ship the physical good to the consumer.
Essentially, while a business can still set its prices for products or services, the advertised price must now reflect the total cost that a consumer will pay. The law also provides for certain other limited exceptions as well (such as, allowing food delivery platforms to display restaurant menu pricing without including the platform's own charges).
This week, the California Attorney General issued a much-anticipated set of FAQs on the law, making clear that the scope covers the sale or lease of most consumer goods and services, including event tickets, accommodations, restaurants, and food delivery, and clarifying some of the industry's questions on implementation.
This should serve as a reminder to make sure your price displays and related advertising have been updated as applicable!
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