California’s hidden fees law, formally SB 478 and known as the Honest Pricing Law, requires businesses to display the full price of a good or service upfront, including every mandatory fee the business controls. The rule took effect on July 1, 2024, and lives in Section 1770(a)(29) of the California Civil Code. If the number you saw when you started shopping is not the number you were asked to pay at checkout, and the difference is something other than taxes or actual shipping, the business is likely breaking the law.
What Counts as a Hidden Fee
The rule is simple in principle. The first price a consumer sees has to include every mandatory charge the business itself imposes. A hotel advertised at $150 a night that adds a $45 resort fee at checkout is violating the law. An event ticket listed at $75 that becomes $95 once “service” and “facility” fees appear in the cart is violating the law. So is a short-term rental that tacks on cleaning and amenity charges after you click to book.
The requirement applies wherever a price appears: websites, apps, social media ads, printed flyers, in-store displays. Fixed-dollar fees and percentage surcharges are treated the same. Linking to a separate fee schedule, or hiding the real total behind a “learn more” button, does not count as disclosure. The full price must sit next to the item, so people can compare offers without doing arithmetic.
The California Attorney General’s office lists event tickets, short-term rentals, hotels, restaurants, and food delivery among the industries the law targets, and online resale platforms are covered on the same terms as the original seller.1California Department of Justice. SB 478 – Frequently Asked Questions Car rentals, subscription services, and third-party marketplaces are all subject to the same standard. A platform that facilitates a sale for another vendor cannot push responsibility onto that vendor when fees inflate the total.
What Businesses Can Still Add at Checkout
Not everything added at the end is illegal. Two categories are carved out of the all-in price:
- Government-imposed taxes and fees, such as sales tax and local occupancy taxes, can appear at the final stage. The business does not set these amounts and they vary by location.1California Department of Justice. SB 478 – Frequently Asked Questions
- Reasonable shipping costs actually incurred to send a physical good to the buyer can be excluded. Shipping only. Handling charges are not exempt and must be baked into the advertised price.1California Department of Justice. SB 478 – Frequently Asked Questions
One point catches businesses out: a cost the company incurs because of a government mandate, like an employee healthcare surcharge tied to a local ordinance, is not a government-imposed fee on the transaction. It is a business operating cost, and the business has to either fold it into the advertised price or, if the restaurant exemption below applies, disclose it on the menu with an explanation.1California Department of Justice. SB 478 – Frequently Asked Questions
Credit card processing fees usually do not have to be folded into the price, because California separately bars retailers from surcharging credit card users when cash or check is an option.2California Legislative Information. California Civil Code 1748.1 The fee is treated as avoidable, and therefore not mandatory. If a business accepts only credit cards, though, any processing fee becomes mandatory and has to be included in the displayed price.3State of California Department of Justice. SB 478 – Hidden Fees
Restaurants, Bars, and Grocery Stores
The restaurant industry pushed back on the original bill, and the legislature responded with SB 1524, signed on June 29, 2024, and effective immediately. It exempts restaurants, bars, food concessions, grocery stores, and grocery delivery services from the all-in pricing mandate on individual food and beverage items.4California Legislative Information. California Civil Code 1770
The exemption is conditional. Any mandatory fee or surcharge has to be clearly and conspicuously displayed, with an explanation of its purpose, on every menu, advertisement, or display where the item price appears. A restaurant can add a 5% kitchen appreciation charge to every check, but only if that charge and the reason for it appear right on the menu next to the prices. Small-print footnotes at the bottom of a menu do not qualify. Third-party food delivery apps do not get this exemption; their mandatory charges still have to follow the standard all-in rule.5LegiScan. California Senate Bill 1524
How to Document a Violation
A hidden-fee complaint stands or falls on proof that the price you were shown differed from the price you were charged, with the difference being something other than tax or real shipping.
Take screenshots the moment you see a listed price. Capture the search results page, the product listing, and the intermediate screens before checkout. Make sure the date, time, and URL are visible. Then complete the purchase and save the itemized receipt showing exactly which fees were added and when. A screenshot of a $100 hotel rate paired with a receipt totaling $135 after a “cleaning fee” and “amenity charge” tells the whole story on its own.
If the same business pulled the same trick more than once, save documentation from each occasion. A pattern strengthens a complaint and can influence whether regulators prioritize an investigation.
How to File a Complaint With the Attorney General
The California Attorney General’s office accepts consumer complaints through an online portal where you upload screenshots and receipts along with a written description of the discrepancy. Physical forms are also available for mailing.6Office of the Attorney General – State of California Department of Justice. Consumer Complaint Against A Business/Company A complaint does not guarantee you personally get money back. It feeds into the office’s enforcement priorities, and when complaints pile up against one business, investigations follow.
How to Sue Under the Consumers Legal Remedies Act
The path to financial recovery runs through the CLRA, and it starts with a letter, not a lawsuit. Before you can sue for damages, you must send a written demand to the business by certified or registered mail, return receipt requested. The letter has to identify the specific violation of Section 1770 and demand that the business correct its pricing practices. The business then has 30 days to fix the problem or offer an appropriate remedy. If it does, you cannot proceed with a damages claim on that violation.7California Legislative Information. California Civil Code 1782 Skip this step and a court can throw the case out.
If the 30 days pass with no fix, you can file suit under Section 1780. Remedies include actual damages, restitution, an injunction ordering the business to stop the practice, and punitive damages in egregious cases. In a class action, the total damages award cannot fall below $1,000. A prevailing plaintiff must be awarded attorney fees and costs, which makes it realistic to hire counsel even when your individual loss is small.8California Legislative Information. California Civil Code 1780
Senior citizens and people with disabilities may qualify for an additional award of up to $5,000 if the court finds they suffered substantial physical, emotional, or economic harm from the business’s conduct.8California Legislative Information. California Civil Code 1780
Small Claims as an Alternative
For a smaller dispute, California small claims court handles individual claims of $12,500 or less.9California Courts. Deciding Between Small Claims and Limited Civil You represent yourself, which eliminates lawyer costs, and the process is a practical option when the hidden fee was modest but you want the business held to account. The 30-day pre-suit notice under the CLRA still applies before you file.