‘Destination fees’, concert ticket ‘service fees’ and other hidden fees must be shown upfront under new California law

(FOX40.COM) — Businesses operating in California will now be required to show all mandatory fees upfront as part of a new law going into effect later this year.

Senate Bill 478, which was signed into law by Gov. Gavin Newsom last October, makes it illegal for most businesses to advertise, display or offer a price for a good or service “that does not include all mandatory fees or charges other than taxes or fees” imposed by the government or applicable shipping charges.

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Official comments in the state analysis of the bill call out a number of the types of hidden fees the bill is taking aim at including “service charges” for live event tickets only revealed at the time of purchase; line item charges on monthly cell phone bills not advertised; non-negotiable “destination fees” added at check out.

“Now we can put the consumer first and create a level playing field for those businesses that advertise the real price, up front,” said California state Senator Bill Dodd, who introduced the bill along with Sen. Nancy Skinner, when the bill was signed.

Businesses exempt from this bill, such as vehicle rental businesses, already have laws regulating the advertising of prices.

The law goes into effect June 1.

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