What does California's junk fee law (SB 478) mean for my business?
Quick answer
Selling to people in California? Since July 1, 2024, California's Honest Pricing Law (SB 478) has required the price you show to include every mandatory fee. You can leave out government taxes and actual shipping costs. Restaurants and bars may list a fee separately if it is clearly shown wherever prices appear (SB 1524).
Key facts and official sources
| Item | What the law says | Source |
|---|---|---|
| Law | Civil Code section 1770(a)(29), added by SB 478 and amended by SB 1524 | Official source |
| Effective | July 1, 2024 | Official source |
| Rule | Do not advertise, display or offer a price that leaves out any mandatory fee or charge | Official source |
| May be left out | Taxes or fees imposed by a government; postage or carriage reasonably and actually incurred to ship a physical good | Official source |
| Restaurants | Mandatory fees of restaurants, bars and select food vendors are exempt if clearly and conspicuously displayed wherever prices are shown (SB 1524) | Official source |
| Who enforces | Attorney General, district attorneys, certain city attorneys and county counsels, and private suits after the CLRA notice process | Official source |
| Private remedies | Consumers Legal Remedies Act (Civ. Code 1780): actual damages (class actions at least $1,000 total), injunction, restitution, punitive damages, attorney fees | Official source |
| Last verified | October 18, 2026 | Astor Ventures |
| Fee type | In the shown price? | Example |
|---|---|---|
| Mandatory service, booking or “convenience” fee | Yes | A $5 booking fee every customer pays |
| Fees that pay for your costs (wages, rent, insurance) | Yes | A 3% “staff wellness” surcharge |
| Handling charge | Yes | “$4 handling” on every order |
| Government taxes and fees | No | Sales tax |
| Actual shipping cost for physical goods | No | Carrier postage |
| Optional add-ons | No | Gift wrap the customer chooses |
| Card fee when other payment methods are accepted | No | Surcharge avoidable by paying cash |
| Card fee when you only accept cards | Yes | Card-only online store |
| Fees triggered by later conduct | No | Late-return fee on rented equipment |
| Restaurant mandatory service fee | May be separate if clearly shown wherever prices appear | “18% service charge” printed on the menu |
Who has to follow SB 478?
Most businesses selling or leasing goods and services for personal use, online or in a store. The Attorney General names event tickets, short-term rentals, hotels and food delivery platforms as examples. It does not apply to purchases for commercial use or to some industries already covered by other pricing laws (AG FAQ).
Can I show a lower price and say fees will be added?
No. The Attorney General says disclosing extra fees before checkout, or adding a percentage fee next to the price, does not comply. The first price shown must be the full price, apart from taxes, shipping and optional extras. You may show the total and then explain which fees are inside it.
What about restaurants and delivery apps?
Restaurants, bars and some food vendors may keep a separate mandatory fee if it is clearly shown wherever prices appear (SB 1524). Delivery platforms follow separate rules for restaurant menu prices, but must advertise the all-in price of their own delivery service (AG FAQ).
What are the penalties?
SB 478 itself does not set a dollar fine. It is part of the Consumers Legal Remedies Act, so customers can sue for actual damages (at least $1,000 total in a class action), restitution, punitive damages and attorney fees (Senate Judiciary analysis). The Attorney General, district attorneys and some city attorneys and county counsels also enforce it. We do not list a single fine figure because the law does not set one.
How is it different from Illinois's 2027 law?
Illinois's rule (815 ILCS 505/2MMMM) starts January 1, 2027 and lets the Attorney General seek up to $50,000. Illinois restaurants must show an automatic gratuity percentage instead of using California's clearly-shown-fee exemption. See the Illinois hidden fee law and our Illinois kit.
Is there a California junk fee kit?
Not yet. We sell state kits for Illinois, Colorado, Virginia, Minnesota, Massachusetts and Oregon. Their fee audit sheet and price wording follow the same all-in idea, but they quote those states' laws, not California's. Compare every state on junk fee laws by state.
Need it done fast? Our one-law compliance kits give you a checklist, fill-in templates and a tracker with the official sources quoted. One-time payment, instant download.
FAQ
Does it cover online sellers outside California?
The Attorney General says SB 478 applies equally to online and brick-and-mortar businesses. If you sell to consumers in California, plan to follow it, and ask a lawyer if your situation is unclear.
What about delivery apps?
Delivery platforms must advertise the full all-in price of their own delivery service. Restaurant menu prices on those apps follow separate rules in Business and Professions Code section 22598 and following.
What are the penalties?
SB 478 does not set a dollar fine. Customers can sue under the Consumers Legal Remedies Act for actual damages, restitution, punitive damages and attorney fees, and the AG and local prosecutors enforce it.
Can I exclude credit card fees?
Yes, if customers can avoid the fee by paying another way. If you only accept cards, the card fee is mandatory and must be in the price.
How is it different from Illinois's 2027 law?
Illinois starts January 1, 2027, has an AG civil penalty of up to $50,000, and requires restaurants to show auto-gratuity percentages.
Is there a kit?
There is no California-specific kit. Our other state junk fee kits use the same all-in pricing approach but cite their own state law.
Is this legal advice?
No. This is general information, not legal advice.