11/02/2023

GT Alert: California Bans Hidden Fees

Financial Regulatory & Compliance

GT Alert | Labor & Employment

California Bans Hidden Fees

California has passed a new law that bans hidden fees, starting July 1, 2024. This law, known as Senate Bill 478 (SB 478), is the most effective piece of legislation in the nation to tackle this problem.

SB 478 bans "drip pricing," which is when a company advertises a lower price for a product or service, but then adds on mandatory fees and charges later on. This is a deceptive practice that can cost consumers billions of dollars each year.

The new law applies to a wide range of businesses, including brick-and-mortar stores, websites, and apps. It is expected to have a significant impact on AHIA members, as many of your businesses rely on transparency and fairness in pricing.

To learn more about SB 478 and how it could impact your business, please download and read the full GT Alert.

 California Bans Hidden Fees