[co-author: Stephanie Kozol]

On May 16, California Attorney General Rob Bonta held a press conference, supporting California Senate Bill 478 (SB 478) to prohibit “junk fees” or hidden fees that a seller may add on top of an advertised price. The bill is currently pending before the California Senate Appropriations Committee.

Consumers are charged junk fees in several industries, including hospitality, purchasing live entertainment tickets, and travel. Bill sponsors Senator Bill Dodd (D-Napa) and Senator Nancy Skinner (D-Berkeley) argue that these junk fees are dishonest and “an underhanded trick to boost corporate profits[.]” If passed, SB 478 would prohibit a business from advertising a certain price and then adding on mandatory charges. Instead, businesses would need to include all required charges, other than taxes, as part of the good or service’s face value price.

Why It Matters

In President Biden’s February 2023 State of the Union speech, he specifically stated that his administration would crack down on junk fees. However, if SB 478 passes, California would be one of the first states to have a legal framework specifically targeting junk fees. This bill further highlights a trend among regulators who seem keenly interested on tackling junk fees.