NOTE: We represent the owners and operators of hotels, restaurants, and other hospitality facilities. We do not represent consumers making claims against such businesses. When it comes to Junk Fee laws at the State or National level, we help the owners and operators of the hotels, restaurants and hospitality facilities to understand and comply with Junk Fee Laws. When claims are made against them by consumers of competitors, we advise on strategies and defense of such claims.
On July 1, 2024, the first comprehensive Junk Fee Law in the United States took effect in California. It prohibits drip pricing, which involves advertising a price that fails to include all mandatory charges and fees a consumer must pay. It requires upfront disclosure of the total price of goods or services upon first contact with the consumer. It applies to the sale of most goods and services, with only a few exceptions. A last-minute restaurant exemption was rushed into law — only two days before the law's effective date.
In a recent program hosted by myLawCLE, junk fee compliance and defense lawyers Jim Butler and Mark Adams presented an update on California and federal regulations regarding junk fees. SB 478, SB 1524, and AB 537 are all in the rearview mirror and the final impact of these bills on our current law is a leading topic of discussion during the webinar. Jim and Mark also analyzed HR 6543 and S 2498, and the FTC's proposed rule on drip pricing and misleading business practices.
In other words, this course includesthe latest information on all the changes to the most significant Junk Fee regulation in California, Congress, and the FTC.
This webinar took place on Thursday, July 18, 2024. To access an on demand recording, click here.
We have special free 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.
So you know you are not missing anything, here is a list of the common names or references for the laws or regulations covered in our Junk Fee program:
- 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))
- California CC 1770 – Consumer Legal Remedies Act (CLRA)
- California Unfair Business Practices – various, including CC 1770(a)
- HR 6543 – No Hidden FEES Act
- S 2498 – Hotel Fees Transparency Act
The webinar provided takeaways for and answered questions about the following:
- An introduction for beginners and details "deep divers"
- Special insights for Hotels, Restaurants, Retailers, and other advertisers
- The Restaurant exception: relief, unintended consequences or trap for the unwary?
- What are the penalties for violation? Who can sue me?
- How to spot and use the good things that the new law brings
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.