Beginning July 1, businesses operating within California must adhere to the new 'Honest Pricing Law' which requires clear pricing without hidden fees.New Price Transparency Requirement
The 'Honest Pricing Law,' SB 478, mandates that Californians must see the total price of goods, services, and experiences, excluding state taxes and shipping costs. This impacts the travel industry as businesses like Airbnbs, cruise lines, and tour operators in California must now display transparent pricing to customers, eliminating hidden fees.Industry Response
Companies like Royal Caribbean and Celebrity have already begun adjusting their pricing to comply with the law, including all taxes and fees in their advertised rates. Other major cruise lines such as Carnival Corporation’s brands are following suit. Despite the initial appearance of higher rates, travelers will not actually pay more, just see all charges included in the total price.Consumer Communication
California's Attorney General, Rob Bonta, emphasized the importance of clear communication with consumers under this new law. The aim is to empower consumers to make informed financial decisions for themselves and their families by providing upfront pricing. Compliance with this law is mandatory for all travel businesses operating in California.National Impact
The law in California aligns with the federal No Hidden FEES Act passed by the U.S. House of Representatives, aimed at ensuring fair pricing and fee disclosure for all lodging establishments nationwide. This federal bill now awaits Senate approval. The implementation of these laws marks a significant shift towards transparency and honesty in pricing within the travel industry, benefiting consumers nationwide.