Governor Newsom signs bill banning hidden fees on purchases like concert tickets, hotel reservations, etc.

SACRAMENTO, Calif. (KION-TV)- Governor Newsom signed Senate Bill 478 Saturday that bans hidden charges on purchases, also known as junk fees.

The bill was authored by Sen. Bill Dodd, D-Napa, in partnership with Attorney General Rob Bonta and Sen. Nancy Skinner, D-Berkeley.

“With the governor’s signing of this historic bill, we can finally take aim at dishonest junk fees that are tacked onto seemingly everything – from online concert tickets to hotel reservations,” said Sen. Dodd. “Now we can put the consumer first and create a level playing field for those businesses that advertise the real price, up front. “I appreciate everyone who worked to end these dishonest charges that boost corporate profits at the expense of those who can least afford it.”

President Biden during his State of the Union address that junk fees applied to transactions by banks, ticket vendors, airlines and online sellers are estimated to cost $28 billion per year.

Biden added that this impacts around 85% of Americans.

The bill prohibits the practice of advertising a certain price and then adding on mandatory charges controlled by the business. Companies that don't comply with the new rules could be subject to steep financial penalties.

“Today, California is eliminating hidden fees. These deceptive fees prevent us from knowing how much we will be charged at the outset. They are bad for consumers and bad for competition.

They cost Americans tens of billions of dollars each year. They hit families who are just trying to make ends meet the hardest. And, because a growing list of websites, apps, and brick-and-mortar businesses are using them, they penalize companies that are upfront and transparent with their prices.

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. I am deeply grateful to Sens. Dodd and Skinner, the authors of SB 478, for their commitment to protecting consumers.”

California Attorney General Rob Bonta.