State leaders look to protect consumers from hidden fees and junk fees

Attorney General Rob Bonta along with Senators Bill Dodd and Nancy Skinner, introduced legislation Tuesday that would prohibit advertising a price for a good or service that does not include all required charges, other than taxes and fees imposed by a government.

The attorney general's office stated that Senate Bill 478 (SB 478) is landmark legislation for California as it looks to end the practice of hiding mandatory fees.

The use of hidden fees and junk fees lure consumers in with one advertised price, and later the price changes as additional charges are tacked on in the buying process. Sellers often hide these additional, mandatory charges by using small type, vague descriptions or misleading wording such as "service fees," by bundling them with legitimate charges like taxes, or revealing them clearly only after the consumer has invested time in the transaction.

"I'm proud to join with Attorney General Bonta and Senator Dodd in heeding President Biden's call to end the scourge of hidden junk fees. Our legislation will bring transparency to the true cost of goods and services in our state so that Californians know upfront exactly how much they're being asked to pay," stated Sen. Skinner.

Although hidden fees historically have been more common in specific industries such as the travel and lodging industry, the practice is spreading. Deceptive mandatory fees are found in a variety of other contexts, such as lodging websites, rental car companies, airport parking, the ticketing industry, restaurant service fees, food delivery charges, telecom and internet service providers, and the automobile industry

"Unfortunately, from car rental and hotel fees to concert ticket service charges, these hidden costs have been normalized in the purchasing process. Today's legislation seeks to hold businesses accountable for their deceptive and misleading practices at the expense of the financial security of millions of Californians. My office will continue to work tirelessly to ensure an equal, level playing field and demand transparency across the board for the protection of California consumers," stated Bonta.