SACRAMENTO – The California Assembly approved legislation from Sen. Bill Dodd, D-Napa, in partnership with Attorney General Rob Bonta and Sen. Nancy Skinner, D-Berkeley, that would outlaw hidden charges on purchases – also known as junk fees — ensuring consumers are not exposed to deceptive business practices that add unfair costs.
“For too long, Californians have been hit with dishonest charges being tacked on to seemingly everything,” said Sen. Dodd. “It is time we put the consumer first and create a level playing field for those businesses that advertise the real price, up front. “Thank you to Assembly members for voting today to end junk fees that boost corporate profits at the expense of those who can least afford it.”
In his State of the Union address, President Biden called out junk fees applied to an array of transactions involving banks, ticket vendors, airlines and online sellers. By one estimate, 85% of Americans have paid hidden fees totaling $28 billion per year. California, which has fifth largest economy in the world and the nation’s largest population, pays an outsized share. The president proposed federal action by numerous federal agencies to address issues within their subject matter and regulatory authority.
At the state level, Sens. Dodd and Skinner, along with Attorney General Bonta, introduced Senate Bill 478, which would expand on the White House proposal and put the Golden State at the forefront of banning these secretive fees, regardless of industry sector. The bill would expressly prohibit the pervasive and deceptive practice of advertising a certain price and then adding on mandatory charges that are controlled by the business. Companies that fail to comply with the new rules could be subject to steep financial penalties.
SB 478, which has broad support from consumer groups, passed the Assembly with strong support. It heads next to Gov. Gavin Newsom following a Senate concurrence vote.
“Today’s vote on SB 478 is a win for Californians,” said Attorney General Rob Bonta. “I am sponsoring this bill to stop hidden fees because the price consumers see should be the price consumers pay. With SB 478 clearing the Assembly, that common-sense principle is one step closer to being made abundantly clear. I am grateful to the authors of the legislation, Senators Dodd and Skinner, for being in this fight with us: Together, we are fighting for consumers and a fair and transparent marketplace.”
“Under SB 478, Californians will know up front how much they’re being asked to pay and will no longer be surprised by hidden junk fees when buying tickets to a concert or sporting event or booking a vacation or hotel,” said Sen. Nancy Skinner, D-Berkeley.
Senator Bill Dodd represents the 3rd Senate District, which includes all or portions of Napa, Solano, Yolo, Sonoma, Contra Costa, and Sacramento counties. You can learn more about the district and Senator Dodd at www.sen.ca.gov/dodd.
Previous Stories
- July 12: Assembly Committee Approves Sen. Dodd’s ‘Junk Fees’ Bill
- June 1: Senate Approves Sen. Dodd’s ‘Junk Fees’ Bill
- May 17: AG Bonta Calls for California Legislature to Ban Hidden Fees
- May 1: Committee Approves ‘Junk Fees’ Bill
- Feb 14: Sen. Dodd, AG Bonta and Sen. Skinner Propose Ban on Hidden ‘Junk Fees’
3 comments
Even if this passes, how do we really *know* that any hidden fee’s present are still not hiding? My guess is that it is not possible, which reduces the effectiveness of this bill. Seems to me you need “foreknowledge” so that it can be recorded and known.
I imagine it adds culpability to the equation, so that you can go after folks that try to pull a fast one, and makes it a little easier to evaluate competing businesses to get the best deals. In any case, any progress is good – the ‘hidden fees’ conundrum has been around since the dawn of of merchant stalls and will always be present in some form or other. It’s the kind of beast you have to keep at bay with aggressive persistence, rather than something you can slay with a single, calculated move.
Now, to have restaurant prices include taxes, fees, and tip as in Europe.
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