Toronto had Honest Ed’s. California has Honest Pricing.
Consumers have long been frustrated at the sometimes significant difference between an advertised airfare or cruise ship cost and the final price, once the hidden fees and taxes are tallied up.
Starting on 01JUL24, in California it will be illegal for businesses to advertise or list a price for a good or service that does not include all required fees or charges, other than certain government taxes and shipping costs. It covers all those previously hidden costs that cannot be deducted from the bill as they are deemed to be mandatory. (Seat selection and checked baggage fees do not have to be included as they are optional.)
The “Honest Pricing Law” or “Hidden Fees Statute,” SB 478, will come into effect next week, but it’s not just for airlines or cruise ships, which have been loudly announcing their move to comply with the legislation.
“The law applies to the sale or lease of most goods and services that are for a consumer’s personal use. For example, it applies to event tickets, hotels and other lodging, restaurants, and food delivery, just to name a few prominent industries.” according to the Attorney General of California Rob Bonta’s website.
This new legislation does not change how companies can price their goods and services, simply that they must present an all-inclusive price to their customers (your clients).
Transparent pricing in this market is something that Canadian consumers would gladly welcome, as evidenced by the move to "all-in" pricing in the automobile sales market. Alberta, Manitoba, Ontario, Quebec, and Saskatchewan, dealers must show “all-in” pricing when they advertise a vehicle, which includes most of the dealer and manufacturer fees buyers have to pay to take the car home. Airlines and the cruise industry should take note.
