The State of California just enacted a new law banning "junk fees." The law goes into effect on July 1, 2024. (Yesterday, the Federal Trade Commission announced that it is also planning to issue a rule prohibiting junk fees as well.)

In a statement, California Attorney General Rob Bonta, who sponsored the bill, said, "Today, California is eliminating hidden fees. These deceptive fees prevent us from knowing how much we will be charged at the outset . . . . With the signing of SB 478, California now has the most effective piece of legislation in the nation to tackle this problem. The price Californians see will be the price they pay."

The new law prohibits the advertising of any price that does not include "all mandatory fees or charges," excluding government-imposed charges and shipping charges "that will be reasonably and actually incurred to ship the physical good to the consumer." The law also provides for certain other limited exceptions as well (such as, allowing food delivery platforms to display restaurant menu pricing without including the platform's own charges).

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