California Honest Pricing Law | Sue Over Junk Fees

Hidden Fees are not only extremely frustrating to consumers, they may be against the law in some cases. State statutes like the California Honest Pricing Law protect consumers against hidden fees, deceptive marketing and false advertising. Contact our experienced privacy lawyers to learn more about taking legal action and how to file a class action claim for any hidden fee violation.

Several states have recently enacted laws to combat hidden fees and deceptive pricing practices, also known as "drip pricing". California and Minnesota have paved way with laws requiring businesses to display the total, all-inclusive price upfront, including mandatory fees. Virginia and Massachusetts have also recently implemented regulations aimed at eliminating hidden fees.

What Does the Law Require?

At its core, SB 478 bans companies from advertising or displaying partial prices that exclude mandatory fees. If a fee is unavoidable, it must be included in the advertised price. Businesses can still:

• Exclude government taxes and fees (like sales tax).
• List shipping separately, as long as it’s a reasonable charge for physical delivery.
• Offer optional add-ons—but those must really be optional. If a charge is automatically applied and hard to remove, regulators may treat it as mandatory.

The Attorney General has also issued guidance warning businesses that the burden is on them to be transparent.

Who Must Follow the Honest Pricing Law?

The statute casts a wide net. It applies to nearly every good or service sold for personal, family, or household purposes in California, whether marketed online or in person. Both original sellers and platforms that display prices must comply. Industries where compliance will be especially visible include:

• Hotels, resorts, and short-term rentals.
• Ticketing platforms and live event promoters.
• Food delivery apps and online marketplaces.
• Gyms, salons, and subscription services.
• Telecom and internet providers.

Restaurants were later given a limited carve-out for service charges, but even there, pricing must remain accurate and not misleading.

Examples of Potential Violations

SB 478 violations may look like:

• A hotel room listed at $150 per night, but checkout shows a non-optional $30 “resort fee.”
• A concert ticket advertised at $75, with a $20 mandatory service fee tacked on at the end.
• A subscription marketed as $9.99/month that quietly includes a $2 processing fee.
• A food delivery order with a hidden platform surcharge revealed only at final checkout.

Any situation where the headline price fails to include all mandatory charges could raise legal risk.

Enforcement Tools

Private Lawsuits

Consumers now have the ability to bring claims under the Consumers Legal Remedies Act (CLRA), which provides damages, injunctions, restitution, and attorney’s fees. These claims are often combined with the Unfair Competition Law (UCL) and the False Advertising Law (FAL) for stronger remedies.

Government Actions

The California Attorney General and local prosecutors can also step in, pursuing civil penalties and requiring businesses to adjust disclosures. Early enforcement efforts will likely set examples for industries with a history of hidden fee practices.

How Consumers Can Prove a Violation

Strong evidence is essential. If you suspect drip pricing, keep records such as:

• Screenshots of the advertised price.
• Screenshots of the checkout screen where the price changes.
• Receipts or order confirmations showing added fees.
• Dates, website/app versions, and device information.
• Marketing materials quoting a lower price.

Even if a fee is labeled “optional,” if it is auto-selected or practically unavoidable, it may fall within the law.

Practical Consumer Tips

• Always ask for an “all-in” price before completing a purchase.
• Document price jumps at checkout and ask the company to honor the advertised amount.
• Dispute charges with your card issuer if fees were concealed.
• Report businesses to the California Attorney General’s Hidden Fees complaint portal.
• Consult a consumer-protection attorney about pursuing a private claim or class action.

Filing a Lawsuit Under SB 478

If you were misled by hidden charges after July 1, 2024, you may have grounds to file suit under the Honest Pricing Law. Depending on the circumstances, claims can be paired with California’s broader consumer statutes (CLRA, UCL, FAL). Remedies may include refunds, injunctions to stop deceptive practices, and recovery of attorney’s fees.

With SB 478 in place, Californians no longer have to tolerate drip pricing as part of everyday commerce. The new framework gives both individuals and regulators tools to demand fairness and transparency from businesses.