What is the new hidden fee law in California?
Asked by: Rocio Macejkovic | Last update: April 22, 2025Score: 4.6/5 (54 votes)
Beginning July 1, 2024, the “Honest Pricing Law” or “Hidden Fees Statute,” SB 478, which was recently amended by SB 1524, makes it illegal for most businesses to advertise or list a price for a good or service that does not include all required fees or charges other than certain government taxes and shipping costs.
How to avoid paying hidden fees?
- Don't believe the promoted price. ...
- Don't be afraid to take your business elsewhere. ...
- Comparison shop with fees in mind. ...
- Pay with cash. ...
- Make a complaint. ...
- Budget for fees. ...
- Watch out for cramming. ...
- Review your monthly bills.
What are the new California laws for July 1 2024?
New California laws taking effect July 1, 2024 ban hidden fees, limit deposits to one month's rent and double the fines for illegal fireworks.
What is the service fee law in California 2024?
Highlights. Effective July 1, 2024, California Senate Bill 478 (SB 478) will ban hidden fees charged for goods and services. The law makes it illegal to advertise a low price for a product, only for that product to be subject to additional or mandatory fees later.
Is it legal to charge customers credit card fees in California?
California Senate Bill 478, part of the Consumer Legal Remedies Act, bans all “junk fees” on purchases across California. This includes credit card surcharges in most situations. It's also worth noting that California's new laws extend beyond credit card surcharges.
New California law bans hidden fees and surcharges
What are the new credit card laws for 2024?
Consumer Financial Protection Bureau Releases Final Rule on Credit Card Late Fees, with Overdraft Fees on Deck. On March 5, 2024, the Consumer Financial Protection Bureau (Bureau) announced the final rule governing late fees for consumer credit card payments, likely cutting the average fee from $32 to just $8.
Can a restaurant charge a fee for using a debit card?
Surcharge fees are strictly limited to credit card transactions only. Even if a client wishes to run a signature debit transaction, where a debit card is processed as a credit transaction, you are still not allowed to implement a surcharge. Surcharges are also not applicable to prepaid cards.
What is the new law on hidden fees?
On July 1, 2024, California banned hidden fees and deceptive “drip pricing” practices. The law applies to businesses selling or leasing goods and services for personal use in California, as well as resellers of goods and services like event tickets and online platforms.
Can I refuse to pay a service charge in California?
Starting July 1, 2024, California will make it unlawful for businesses to add any automatic service charges onto consumer bills. Service charges are mandatory fees tacked onto bills (often for the provision of services in the hospitality industry) that customers have no discretion but to pay.
What is the California 7 year rule?
Section 2855(a) limits the term of personal service employment to seven years, i.e. a personal service employment contract may not be enforced for a period exceeding seven years. This is the reason the statute is famously known as the “Seven Year Rule.”
Is it illegal to be homeless in California in 2024?
The Supreme Court's 2024 decision in the City of Grants Pass v. Johnson case allows cities to enforce laws that penalize homeless individuals for sleeping in public spaces, even when no shelter is available (SCOTUSblog).
What is the new law passed in California in 2025?
New 2025 California laws: Artificial intelligence, octopuses, cannabis cafes and more. New California laws in 2025 allow new entertainment zones, cannabis cafes and offer more protection against deepfakes and artificial intelligence. SACRAMENTO, Calif.
What is the coming and going rule in California?
In general, the “going and coming” rule provides that injuries incurred during your commute are not covered for purposes of workers' compensation. This result may seem idiosyncratic because the only reason you are commuting is to get to work, therefore, it is for the benefit of your employer.
What is an example of hidden fees?
Hidden charges and undisclosed fees can appear in a variety of different circumstances, including: Undisclosed fees from financial professionals and brokers. Inactivity fees charged by a credit card company. Charges to attend an entertainment or sports event.
Why are hidden fees legal?
The law requires honest pricing. It prohibits businesses from “[a]dvertising, displaying, or offering a price for a good or service that does not include all mandatory fees or charges” other than government- imposed taxes or fees or reasonable shipping costs.
What is the first step to defeat hidden fees?
So put on your gloves and let's look at five ways to defeat hidden fees. - The first way to destroy hidden fees is to actually notice that they're there. A lot of hidden fees stay hidden, which can easily happen if you have auto-pay.
What is the California junk fee law?
Beginning July 1, 2024, the “Honest Pricing Law” or “Hidden Fees Statute,” SB 478, which was recently amended by SB 1524, makes it illegal for most businesses to advertise or list a price for a good or service that does not include all required fees or charges other than certain government taxes and shipping costs.
What are the new California laws for July 2024?
The new law aims to prohibit "junk fees" across a range of businesses, including restaurants, bars and delivery apps. Restaurants will need to factor surcharge fees into menu prices, as opposed to simply advertising them at the end of a bill.
Can restaurants in California charge a credit card fee?
In 1985, California passed a law (Civil Code section 1748.1) that prohibited merchants from adding a surcharge (an extra fee) when customers pay by credit card instead of cash.
Do retailers have to honor price mistakes in California?
No, the store is required by law to charge you the lowest of the advertised or posted price. When there is an overcharge, many stores have a policy to refund part of the price or give you the item free, but they are not required to do so under weights and measures laws.
What is the California consumer legal remedies act?
The Consumers Legal Remedies Act makes unlawful certain unfair methods of competition and certain unfair or deceptive acts or practices undertaken by a person in a transaction intended to result or that results in the sale or lease of goods or services to a consumer, including advertising goods or services with intent ...
What is considered a hidden cost?
Definition. Hidden costs involve obscuring or omitting additional fees, charges, or costs until the user is well into the purchasing or sign-up process. By that point, the user has already invested time and effort into the transaction and is more likely to proceed despite the unexpected costs.
Can you pass on credit card fees to customers in California?
While the California Civil Code Section 1748.1 prohibits retailers, including service providers, from imposing surcharges on customers who choose to pay with a credit card, it also allows retailers to offer discounts to encourage payment by cash, check, or other means.
Is it against the law to charge a debit card fee?
No, surcharging for debit card transactions is prohibited under the Durbin Amendment of the Dodd-Frank Wall Street Reform and Consumer Protection Act. This applies to all types of debit cards, including prepaid cards.
Why are restaurants charging a transaction fee?
The cost of processing
The reason that many venues charge a convenience fee is that the bank and processor service both take a small percentage from each credit card payment the business processes.