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On July 1, 2024, California's new Junk Fee Law took effect. It could have worldwide impact if prices for goods or services are publicly advertised and reach California residents. How can you avoid that with online ads and other public broadcasts over commercial media?
In anticipation of this event, many international hotel companies, cruise lines, travel providers, ticket sellers, and online sellers have already changed their advertising and promotions to comply with California law rather than risk violation. Watch for a big change to "transparent pricing" as you search online.
Take this short survey to double check your exposure
It is so much easier to prevent junk fee litigation than to defend it. Even if you "win," it is expensive to fight government agencies. It can be worse combatting class action lawsuits by consumers with contingent fee plaintiffs' lawyers. (Think of the 40,000+ lawsuits filed under the ADA and comparable state laws that provide for attorneys' fees to plaintiffs)
Wakeup! It is July 1, and time to check the last-minute changes signed into law by the California Governor on June 29. Determine whether this law applies to you. Understand what it takes to comply or validly secure an exemption. Consider your answer to the following questions:
- Do you offer hotel, restaurant, or short-term lodging facilities?
- Do you offer consumers goods or services from California, or to California residents?
- Are you going to rely on the restaurant exemption from the new law?
If you answered "yes" to any of these questions, consider a pro-active consultation to prevent unnecessary problems with the new California Junk Fee Law (as amended on Saturday, June 17, 2024).
Resources to help you avoid problems with California's Junk Fee Law
The resources below provide the latest information on all the changes to the most significant Junk Fee regulation in California, Congress, and the FTC.
Free blog articles from the hospitality lawyers in JMBM's Global Hospitality Group®. Extensive up-to-date blog articles, analysis and copies of the new laws and regulations.
Live Webinar (July 18, 2024) and On Demand recording. We have special passes for clients and friends of JMBM's Global Hospitality Group®. Contact Laura Bailey
Event Details
Date: July 18, 2024
Location: Live Video-Broadcast
Time: 10 AM – 12:10 PM PST
Agenda and Registration: Click here
We have special passes available for our clients and industry friends. If you would like more information on these passes, please contact Laura Bailey at lbailey@jmbm.com.
What Junk Fee laws and regulations are covered? –
All California Junk Fee Laws, as well as proposals in the US Congress and by the FTC are covered in our Blogs and the Webinar. So you know you are not missing anything, here is a list of the common names or references for the laws or regulations we talk about:
Consumer Legal Remedies Act (CLRA) – SB 478, SB 1524, and CC 1750, et seq.
California Junk Fee Law – SB 478, SB 1524 and CRLA, as amended
CA Honest Pricing Law – SB 478
CA Hidden Fees Statute – SB 478
CA Transparency in Short-term Lodging Law – AB 537
CA SB 478 – Honest Pricing Law, or Hidden Fees Statute
CA SB 1524 – Restaurant exception to SB 478 (and to CC 1770(a)(29)(D))
CA CC 1770 – Consumer Legal Remedies Act (CLRA)
California Unfair Business Practices – various, including CC 1770(a)
FTC Proposed Rule to Prohibit Junk Fees (adds Part 464 to 16 CFR)
HR 6543 – No Hidden FEES Act
S 2498 – Hotel Fees Transparency Act
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.