Frustration over hidden fees in California ends July 1

SAN DIEGO (FOX 5/KUSI) – Come Monday, changes will be coming to California as a variety of new laws are set to go into effect, including one aimed at banning hidden fees.

“We need to know. We need to know what we’re paying for,” said Kelley Day.

Thanks to Senate Bill 478, consumers will know the price of a product or service from the start — not when they get the bill.

“I feel like it makes it fair for consumers in general. You get what you get. You’re seeing the price and then it makes it so no one can complain,” said Zoe Miller.

Also known as the honest pricing law or hidden fees statute, the bill paves the way for transparency. It applies to the sale of most goods and services including restaurants, hotels, event tickets and food delivery service.

“If consumers see a low price at the beginning, then they are more likely to make a commitment there and then once they’ve made the commitment, they’ll have to put up then with the higher price at the end. It’s kind of a bait and switch,” said Alan Gin, an economics professor at University of San Diego.

Gin says restaurants may be among the most worried to bake the total cost of fees and surcharge into the price of what’s on your plate.

“It’s the restaurant industry particularly that’s complaining about this and they may carve out legislation that says their fees would be OK if they display them prominently on the menu,” Gin added.

Lawmakers are currently contemplating that exemption for restaurants. The law already has exemptions for taxes and things like shipping and delivery charges.

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