Resort fees are not illegal in California, but hiding them is. Since July 1, 2024, state law has required hotels, short-term rentals, and booking platforms to include every mandatory fee in the price a consumer first sees. A hotel can still charge a $45 resort fee. It just cannot advertise a $199 room and then add that fee at checkout.
What SB 478 Actually Prohibits
California’s Honest Pricing Law, SB 478, is codified at Civil Code Section 1770(a)(29). It makes it unlawful to advertise or display a price that does not include all mandatory fees and charges. The only permitted exclusions are government-imposed taxes (transient occupancy tax, sales tax) and reasonable shipping costs, which do not apply to a hotel stay.1California Legislative Information. California Code CIV 1770 – Consumers Legal Remedies Act
A hotel cannot cure a violation by disclosing the fee later in the booking flow. The advertised price must be the full price the guest is required to pay. Showing one number on a search results page and adding a mandatory “resort fee,” “destination fee,” or “amenity fee” on a later screen is illegal, even if it appears before the guest clicks confirm.2State of California – Department of Justice – Office of the Attorney General. SB 478 – Hidden Fees
The law reaches broadly. Traditional hotels, motels, vacation rentals listed on Airbnb and VRBO, and online travel agencies that sell California accommodations all fall within it. The hotel can charge whatever total price it wants and can break the total into components for transparency. What it cannot do is quote a base rate and tack on required charges after the fact.2State of California – Department of Justice – Office of the Attorney General. SB 478 – Hidden Fees
What Hotels Can Still Add On Top
Not every extra line on a hotel bill is a hidden fee. SB 478 sets the rule for mandatory charges, and a few categories legitimately sit outside the advertised price:
- Government taxes, including transient occupancy tax and sales tax. These vary by city and county and may be added to the listed rate.
- Genuinely optional services: room upgrades, spa treatments, minibar purchases, and parking when the guest can decline it.
- Contingent charges that depend on the guest’s later behavior, such as a smoking penalty in a non-smoking room or a fee for lost keys. These are not mandatory at booking.
The dividing line is whether every guest has to pay. If a property charges a “destination fee” or “amenity fee” to every room regardless of whether the guest touches the pool, gym, or Wi-Fi, the fee is mandatory and must be built into the advertised price.2State of California – Department of Justice – Office of the Attorney General. SB 478 – Hidden Fees
The Federal Rule That Backs This Up
A federal rule reinforces the California requirement. The FTC’s Rule on Unfair or Deceptive Fees, at 16 CFR Part 464, took effect on May 12, 2025, and covers short-term lodging nationwide, including hotels, motels, inns, vacation rentals, and home-share platforms.3Federal Trade Commission. FTC Rule on Unfair or Deceptive Fees to Take Effect on May 12, 2025
Under the federal rule, any business that displays lodging pricing must show the total price more prominently than any other pricing information. That total has to include every fee the consumer is required to pay, every fee the consumer cannot reasonably avoid, and every charge for goods or services a reasonable consumer would expect to be part of the stay. Government taxes and truly optional add-ons can be excluded from the total but must be disclosed before payment.4Federal Trade Commission. The Rule on Unfair or Deceptive Fees – Frequently Asked Questions
The rule also bans misrepresenting a fee’s purpose, amount, or refundability. A property that labels a mandatory charge in a way that implies it is optional violates the rule. The FTC can order businesses to change their practices, refund consumers, and pay civil penalties.5eCFR. 16 CFR Part 464 – Rule on Unfair or Deceptive Fees
For a California traveler, this means two independent legal bases: the state statute and the federal rule. A hotel that complies with one should comply with the other, but the practical value is that consumers and regulators can invoke either.
What to Do About a Hidden Resort Fee
If a California hotel adds a mandatory fee that was not in the advertised price, several remedies exist. The right one depends on how much money is involved and how far you want to push.
Dispute the Charge With Your Credit Card
The fastest route is a chargeback. The Fair Credit Billing Act gives you the right to dispute billing errors with your card issuer, including amounts you did not agree to pay. The deadline is 60 days from the statement date on which the charge appears, so move quickly after the stay.6Federal Trade Commission. Fair Credit Billing Act
Card issuers must investigate and respond within two billing cycles. Screenshots of the booking page, the confirmation email showing your quoted rate, and the final folio showing the added fee will carry most disputes. Issuers tend to side with the cardholder when the evidence shows the fee was not part of the agreed price.
Small Claims Court
For a single stay with a fee of $30 to $75, small claims is often more practical than a formal lawsuit. California individuals can bring claims up to $12,500 without a lawyer. Bring your booking confirmation with the advertised rate, the final bill with the added fee, and the text of Civil Code 1770(a)(29). Filing fees are modest.
A CLRA Demand Letter and Lawsuit
Because SB 478 is codified inside the Consumers Legal Remedies Act, a hidden-fee violation is a direct CLRA violation. A consumer harmed by the violation can recover actual damages, restitution, punitive damages, and attorney’s fees.7California Legislative Information. California Code CIV 1780 – Consumers Legal Remedies Act
There is a mandatory first step for damages claims. You must send a written demand to the hotel by certified or registered mail, return receipt requested, identifying the specific violation and asking for a fix. Send it to the location where the transaction happened or to the company’s principal California place of business. If the hotel provides an appropriate remedy within 30 days, the damages claim ends there.8California Legislative Information. California Civil Code 1782
If the hotel refuses, a lawsuit becomes viable. The attorney’s-fees provision matters here: it makes it worthwhile for a lawyer to take a case built around a small fee, because the hotel pays legal costs if the consumer wins.
Where to File a Complaint
Individual travelers are not the only ones enforcing these rules. The California Attorney General’s Office treats SB 478 as a priority and investigates hotels that draw complaints. The AG can require pricing changes, order refunds, and pursue civil penalties.2State of California – Department of Justice – Office of the Attorney General. SB 478 – Hidden Fees
County district attorneys’ consumer protection units bring their own cases and sometimes coordinate with the state AG. At the federal level, the FTC enforces the junk fee rule and can order refunds and civil penalties.4Federal Trade Commission. The Rule on Unfair or Deceptive Fees – Frequently Asked Questions
Filing with both the California AG and the FTC costs nothing and puts the property on record. Enforcement action often follows the cumulative weight of multiple complaints against the same hotel, so a single filing genuinely contributes to the record regulators use to pick their targets.