California lawmakers launched laws Tuesday geared toward preventing hidden or “junk” charges for every thing from live performance tickets to groceries.
Senate Invoice 478 would prohibit corporations from hiding necessary charges that lawmakers described as a “misleading promoting follow.”
“Everyone knows how irritating it’s to get to the checkout and discover out one thing marketed at one worth truly prices a lot, way more,” state Atty. Gen. Rob Bonta mentioned Tuesday in the course of the invoice’s introduction.
The follow has been widespread within the journey and leisure industries during which patrons are met with exorbitant and vaguely outlined “service charges” or “comfort charges” when trying out.
As an example, a “Platinum” ticket for Blink-182’s June 16 date at Banc of California Stadium was listed on Ticketmaster as $290.
However an extra $42.90 service charge and $5 processing charge brings the whole to $337.90.
“As I’m certain Californians have seen, we’re seeing this extra usually,” Bonta mentioned.
The follow makes it laborious for shoppers to check costs or make a price range.
“The costs marketed must be the worth you pay,” Bonta mentioned.
The invoice, which was co-authored by Sens. Invoice Dodd (D-Napa) and Nancy Skinner (D-Berkeley), would require that the marketed worth of a services or products would come with all required prices apart from authorities taxes or charges.
The invoice arrives months after the proposal of a federal rule final yr that will require airways to listing the “true value” of tickets together with the worth of checked baggage and alter charges.
Junk charges value Californians billions of {dollars} per yr, Dodd mentioned.
“It’s apt that we’re introducing our invoice on Valentine’s Day as a result of it’s time for companies with junk charges to begin exhibiting some like to California shoppers,” Dodd mentioned.
The introduction of the invoice in California comes every week after President Biden lambasted the follow in his State of the Union deal with, pushing for passage of the Junk Price Prevention Act.
“My administration can be taking up ‘junk’ charges, these hidden surcharges too many companies use to make you pay extra,” Biden mentioned in the course of the speech. “For instance, we’re making airways present you the total ticket worth upfront and refund your cash in case your flight is canceled or delayed.
“Junk charges might not matter to the very rich, however they matter to most people in properties just like the one I grew up in,” he mentioned.
