California lawmakers aim to ban hidden fees that make prices more expensive than advertised
LOS ANGELES (KABC) -- State lawmakers have introduced a new bill that would prohibit the use of hidden fees charged by businesses such as hotels, rental car agencies and concert-ticket sellers.
California Attorney General Rob Bonta calls the fees a "bait and switch" tactic.
He says businesses lure potential customers with prices that are not reflective of what they'll actually pay.
They don't find out the real price - when the mandatory fees are tacked on at the end - until they've already invested time in making the decision to purchase, he says.
Bonta says "deceptive mandatory fees" were historically charged by some industries such as travel and lodging, but the practice is now spreading to other businesses including airport parking, restaurants, internet providers and automakers.
"We all know how frustrating it is to get to the checkout and find out that something advertised as one price actually costs much, much more," Bonta said. "Like a family booking a hotel room online, sorting the list by the cheapest options, but noticing at checkout the hidden resort fee."
Bonta says 85% of Americans have paid hidden fees or junk fees over the past two years.
He adds transparency and full disclosure of all fees are crucial for fair competition and consumer protection.
The bill targets charges that are controlled by the business, not government-mandated taxes and fees.
The legislation, Senate Bill 478, was introduced with Sens. Bill Dodd and Nancy Skinner.
