California AG Releases Guidance on “Honest Pricing Law”

  • California AG Rob Bonta has issued guidance regarding California Senate Bill 478, also known as the “Honest Pricing Law” or “Hidden Fees Statute,” that will take effect July 1, 2024.  The new law is designed to eliminate hidden and other “junk” fees, making it illegal for businesses to advertise or list a price for a good or service that does not include all required fees or charges.
  • According to the FAQs, the intent behind the law is that “the price a Californian sees should be the price they pay.” It further clarifies that the law does not limit what types of fees a business can charge, however, the posted price must include the full amount that a consumer must pay for that good or service inclusive of fees. The FAQs also address the law’s specific application to shipping and handling fees, fees for optional services or features, food-delivery platforms, event tickets, and resale of goods on online platforms.