On July 1, 2024, the “junk fee” amendment to the California Consumers Legal Remedies Act (CLRA) will go into effect. Under this new provision, it will be a violation of the CLRA if a company advertises, displays, or offers goods or services at a price, but does not disclose all mandatory fees or charges when displaying the price. Businesses failing to abide by this requirement could face regulatory enforcement and consumer class actions seeking statutory damages, punitive damages, and attorney fees. 

Notably, the amendment does not require taxes and reasonable shipping charges to be disclosed prior to checkout. Likewise, it does not require food delivery platforms to disclose fees for delivery services. Certain industries such as car rental, automobile manufacturers, and some financial industries are also exempted, because their advertising and marketing are regulated by different laws. 

Prior to July 1, 2024, companies should closely review all of their advertising and marketing materials, including their websites and in-store materials, to ensure that all necessary fees and charges are disclosed.