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SB-478 Consumers Legal Remedies Act: Advertisements

Beginning July 1, 2024, the “Honest Pricing Law” or “Hidden Fees Statute,” SB 478, makes it illegal for
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. SB 478 is a price transparency bill. The statute
does not change what price a business can charge or what may be included in that cost. The law simply
requires that the price listed include all mandatory charges.

Put simply, the price a Californian sees should be the price they pay.

In order to help businesses comply with this new law, and to offer consumers guidance about what they
can expect, the Attorney General’s Office is releasing a set of FAQs. The law is found at Section 1770(a)(29)
of the California Civil Code.

Which businesses need to follow this law?
The law applies to the sale or lease of most goods and services that are for a consumer’s personal use.
For example, it applies to event tickets, short-term rentals, hotels, restaurants, and food delivery, just to
name a few prominent industries. The law does not apply to the purchase or lease of goods or services
for commercial use, or to certain other specified transactions and industries that are already subject to
other laws governing pricing.

Review FAQ here