What is the hidden fee law?

Asked by: Margot Greenfelder  |  Last update: March 19, 2025
Score: 4.9/5 (58 votes)

SB 478 prohibits advertising a price that is less than what a consumer will have to pay for a good or service. Advertisements that mention discounts – but that do not list a price – do not violate the law.

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.

What is an example of a hidden fee?

Example of a Hidden Fee

If you're looking for a deal, you may opt for cheaper accommodations at another hotel at a rate of $100 per night. But there may be a $10 resort fee at the time of booking or even at a later date. Such charges are not typically part of the price advertised.

What is the California law 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 FTC hidden fee rule?

The FTC's Junk Fees Rule requires any business (collectively, a covered business) that sells live-event tickets or short-term lodging (e.g., hotels, vacation homes, and other short-term rentals) to disclose clearly and conspicuously all mandatory fees associated with any good or service offered.

QUICK TIP: How can you tell if a 'hidden fee' is legal?

15 related questions found

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 new FTC rule?

On April 23, 2024, during a special open meeting, the Federal Trade Commission (FTC) voted 3-2 along party lines to finalize a rule banning any new non-compete restrictions for workers in the US.

What is the 7 year rule in California?

California prohibits CRAs from reporting convictions older than seven years under Cal. Civ. Code 1786.18(a)(7). This law also prohibits CRAs from reporting arrests not leading to convictions even if they occurred within the last seven years, but pending cases can be reported.

What is the new law in 2024 in California?

California Gov. Gavin Newsom signed several laws in 2024 addressing a variety of topics including reforms to the California Private Attorneys General Act, discrimination, victims of domestic violence and paid family leave.

What is the 5 year rule in California?

The “5-year rule” in California refers to summary dissolution, which is a simplified process for ending a marriage or domestic partnership without a formal court hearing. Its hope is to be a fast and less expensive option for couples who meet the specific criteria.

How to avoid paying hidden fees?

How to protect yourself from hidden fees
  1. Don't believe the promoted price. ...
  2. Don't be afraid to take your business elsewhere. ...
  3. Comparison shop with fees in mind. ...
  4. Pay with cash. ...
  5. Make a complaint. ...
  6. Budget for fees. ...
  7. Watch out for cramming. ...
  8. Review your monthly bills.

Is it legal to charge credit card fees in California in 2024?

As of July 1, 2024, credit card surcharging is illegal in California. California Governor Gavin Newsom signed Senate Bill 478 (Consumer Legal Remedies Act) to eliminate “junk fees” and false advertising.

What are the consequences of hidden fees?

One of the significant impacts of hidden fees is the erosion of consumer trust. When users discover unexpected charges, they may feel misled or manipulated, leading to dissatisfaction with the service. In an industry built on innovation and convenience, transparency is crucial.

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.

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.

Can I 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.

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 22 law in California?

State of California unanimously upheld Proposition 22, the 2020 ballot measure that allows gig economy businesses like Uber and Lyft to legally classify their drivers as independent contractors, rather than employees.

What is the new vacation law in California?

AB2123 disallows prior law which allowed California employers to require employees to use up to two weeks of accrued vacation time before they start receiving benefits under California's Paid Family Leave program.

What is the 72 hour rule in California?

In California, you must receive your final paycheck immediately if you get terminated or resign with at least 72 hours' notice. If you quit without notice, then your employer has 72 hours to give you your final paycheck.

What is the rule of 65 in California?

Rule of 65 applies if the age of the recipient at the time of divorce plus the number of years they were married equals or is more than 65. If this is the case, spousal support may be paid indefinitely, even if the marriage was less than 10 years.

At what age can a child be left at home by themselves in California?

In California there is no legal minimum age a child can be left alone, according to the San Bernardino County District Attorney's office. However, the maturity and emotional level of a child are “factors that should be taken into account,” the agency said.

What is the FTC 3 day Rule?

The Cooling-Off Rule gives you three days to cancel certain sales made at your home, workplace, or dormitory, or at a seller's temporary location, like a hotel or motel room, convention center, fairground, or restaurant. The Rule also applies when you invite a salesperson to make a presentation in your home.

What is the FTC Rule 1?

What is the Fundamental Theorem of Calculus Part 1 Formula? Part 1 of the fundamental theorem of calculus is used to differentiate an integral. It says d/dx ∫ax f(t) dt = f(x). Note that to apply this theorem, the lower bound of the integral must be a constant.

Which of the five laws are enforced by the FTC?

The FTC administers a wide variety of laws and regulations, including the Federal Trade Commission Act, Telemarketing Sale Rule, Identity Theft Act, Fair Credit Reporting Act, and Clayton Act.