By Dan Gildor
Feb. 25, 2025
Have you ever booked a hotel room online for $199, only to discover a mandatory $50 “resort fee” at check-in? Or purchased concert tickets advertised at $75, then watched the price balloon to over $100 with “facility charges” and “processing fees”? Those frustrating bait-and-switch pricing tactics are now illegal in California thanks to SB 478, a consumer protection law.
What California’s Honest Pricing Law Means for You
California’s Senate Bill 478, the “Honest Pricing Law” that took effect July 1, 2024, is a game-changer for consumers. This powerful legislation requires businesses (except restaurants, which were exempted under SB 1524 in July 2024) to include all mandatory fees in their advertised prices – meaning no more surprises when you checkout.
The Hidden Fee Protection You Deserve
The new Honest Pricing Law addresses the rampant problem of consumers being surprised by fees at the end of the online checkout process or after they had already used a service. Oftentimes consumers do not even see these fees after they had already decided to make a purchase based on the original prices shown earlier.
Under this groundbreaking law:
– Hotels must include resort fees in their advertised room rates
– Ticket sellers must show facility fees and service charges upfront
– Online retailers must display all mandatory fees in their listed prices
– Vacation rentals must incorporate cleaning fees in advertised rates
The only fees that can be added later are genuinely optional add-ons and government taxes. Everything else must be included in the price you first see.
The Shocking Cost of Hidden Fees & How to Spot Violations
The financial impact of drip pricing is staggering: Americans pay an estimated $64 billion annually in hidden fees, with the average household losing approximately $533 each year. Hotel resort fees alone average $30 per night but can reach $160 at luxury properties. Concert tickets typically include hidden fees adding 20-30% to advertised prices, while vacation rental cleaning fees average $75-125 per stay.
With 64% of consumers encountering unexpected mandatory fees in the past year according to Consumer Reports, California’s new law provides crucial protection. Here’s how to identify if a company might be violating your rights:
- Compare advertised prices to your final bill – any unexpected mandatory charges could signal a violation.
- Look for asterisks or fine print indicating additional required fees.
- Watch for language like “starting at” or “base price” that might hide mandatory fees.
- Check your receipts for charges described as “required” or “mandatory” that weren’t in the advertised price.
Fighting Back: The Consumer’s Path to Compensation
If you’ve experienced drip pricing since July 2024:
- Document everything! screenshots of advertisements, confirmation emails, and final receipts are critical evidence.
- Save all communications with the company about pricing.
- Track your actual damages, meaning the difference between advertised price and what you actually paid.
- Consult a consumer rights attorney experienced in deceptive pricing cases.
Ready to Take Action? Valerian Law Can Help
At Valerian Law, we specialize in fighting for consumers against deceptive business practices. Our team of experienced consumer rights attorneys is ready to help you seek justice under California’s Honest Pricing Law.
Call us at (888) 686-1918 or visit www.valerian.law to request a consultation. We work on a contingency basis – you don’t pay unless we win your case.
Don’t let businesses get away with hidden fees. Together, we can enforce SB 478 and create a marketplace with the pricing transparency California consumers deserve.