California's Hidden Fees Law: What Must Be in the Advertised Price

What does California's hidden fees law require?

California's hidden fees law requires the first price you see to be the price you pay, apart from government taxes and shipping. Civil Code section 1770(a)(29) lists it as an unlawful practice to advertise, display or offer a price for a good or service that does not include all mandatory fees or charges.

The rule came from SB 478 and became operative on July 1, 2024. The California Attorney General calls it the Honest Pricing Law and describes its target as drip pricing: showing a low number up front and adding required fees as you click through. The AG's guidance also describes SB 478 as a transparency law, not a price control. A business can still set its prices and charge its fees; the price it advertises has to be the full amount you must pay.

Because section 1770 is part of the Consumers Legal Remedies Act (CLRA), a violation gives individual consumers a way to seek a remedy, which is where a written notice comes in.

Which charges can still be added at checkout?

The statute allows only two exclusions from the advertised price: taxes or fees imposed by a government on the transaction, and postage or carriage charges reasonably and actually incurred to ship a physical good. The Attorney General's guidance explains how other common charges fit.

A variable fee that appears only at a late step is prohibited, according to the AG. So is a price followed by a line such as plus a 15 percent service fee. Telling you fees will be added does not cure the problem; the advertised number itself has to include them.

Restaurants, banks and broadband: who is exempt?

Three carve-outs are written into the statute itself, and the AG adds that purchases for commercial use are not covered.

• Restaurants, bars, food concessions, grocery stores and grocery delivery services. After SB 1524, a mandatory fee on individual food or beverage items is allowed if it is clearly and conspicuously displayed, with an explanation of its purpose, on any menu, ad or display that shows the price. Banquet and catering menus that fully disclose terms are also covered. The exemption does not extend to third-party food delivery platforms.
• Certain financial entities that already give disclosures under federal or state laws such as the Truth in Lending Act or the Truth in Savings Act are exempt for those transactions.
• Broadband providers that comply with the FCC's broadband consumer label rules are treated as complying with the California rule.

Tips you choose to leave are not mandatory fees, so the law does not touch them. A restaurant service charge that is printed only at the bottom of the bill, with no explanation on the menu, may be outside the exemption.

How does the FTC junk fee rule fit in?

A federal rule covers two industries nationwide. The FTC's Rule on Unfair or Deceptive Fees (16 CFR Part 464) took effect May 12, 2025 and applies to live-event tickets and short-term lodging, including hotels, motels and vacation rentals. As of October 2026 it remains in the Code of Federal Regulations.

Under the federal rule, any advertised price for a covered ticket or room must clearly disclose the total price, and the total price must be more prominent than other pricing information. Government charges, shipping charges and optional extras may be left out of the total, but their nature, purpose and amount must be disclosed before you pay. The rule also bans misrepresenting a fee's purpose or refundability.

The FTC rule does not displace California law where California protects consumers more (16 CFR 464.4). For a concert ticket or hotel room in California, both rules can apply at once. You can report a suspected federal violation through ReportFraud.ftc.gov.

Example: a hotel resort fee, line by line

Example (hypothetical): a booking site advertises a coastal hotel at $189 a night. After you choose three nights, the checkout adds a $35 nightly resort fee, a $12 booking fee and local occupancy tax. The card is charged $684 plus tax.

The same facts could raise questions under the FTC rule, since short-term lodging is covered. A court, not the guest, decides whether a violation occurred and what remedy fits.

How to send a CLRA notice about hidden fees

A CLRA damages suit has a precondition: a written notice sent 30 days or more before filing (Civil Code section 1782). The notice must identify the particular violations of section 1770 and demand that the business correct, repair, replace or otherwise rectify them.

1. Screenshot the advertised price and every checkout screen, with dates. Save the receipt and the card statement.
2. List each mandatory fee that was missing from the advertised price and its amount.
3. Identify the business's principal place of business in California, or the place where the transaction happened.
4. Write the notice: the purchase, the advertised price, the fees added, the statute (section 1770(a)(29)) and the remedy you request, such as a refund of the hidden fees.
5. Send it by certified or registered mail, return receipt requested, as section 1782 requires. Email can be a courtesy copy, not a substitute.
6. Calendar 30 days from the date the business receives it.

If the business gives an appropriate correction or refund, or agrees to within a reasonable time, within 30 days of receiving the notice, an individual damages claim under the CLRA generally cannot go forward (section 1782(b)). The law also treats the business's attempt to comply as an offer to compromise, not an admission.

What can you recover, and where else can you go?

Section 1780 lists the remedies a court can award under the CLRA: actual damages, an order stopping the practice, restitution, punitive damages and other proper relief. The court must award costs and attorney's fees to a prevailing plaintiff. Seniors and people with disabilities may seek up to $5,000 more when a court makes specific findings of substantial harm.

For a refund of a few fees, you might start with the business and your card issuer. Our guide to a chargeback versus a demand letter explains the trade-offs. If a fee was tied to a subscription you could not cancel, see subscription cancellation letters. For surprise charges on a phone or internet bill, our guide to disputing a phone bill in California covers regulators and cramming rules.

When an attorney-written hidden fee letter makes sense

A one-time $12 fee may not justify more than an email. A formal notice earns its keep when the hidden charges are large, when they repeat every month, when the business has ignored you, or when you want the 30-day CLRA notice done correctly in case you later file.

Talk to My Lawyer can prepare that notice: a licensed California attorney writes your letter from your screenshots, receipts and statements, cites sections 1770(a)(29) and 1782, and sends it on your behalf by certified mail. A lawsuit or class claim raises separate questions, so speak with a lawyer before filing one.