California’s new Junk Fee Law now has world-wide effect. Here’s what you need to know to avoid costly litigation.
by Mark S. Adams Hotel Dispute Lawyer, Partner & Senior Member JMBM’s Global Hospitality Group
On July 1, 2024, California’s new Junk Fee Law took effect. It could have worldwide impact if prices for goods or services are publicly advertised and reach California residents. How can you avoid that with online ads and other public broadcasts over commercial media?
In anticipation of this event, many international hotel companies, cruise lines, travel providers, ticket sellers, and online sellers have already changed their advertising and promotions to comply with California law rather than risk violation. Watch for a big change to “transparent pricing” as you search online.
Take this short survey to double check your exposure
It is so much easier to prevent junk fee litigation than to defend it. Even if you “win,” it is expensive to fight government agencies. It can be worse combatting class action lawsuits by consumers with contingent fee plaintiffs’ lawyers. (Think of the 40,000+ lawsuits filed under the ADA and comparable state laws that provide for attorneys’ fees to plaintiffs)
Wakeup! It is July 1, and time to check the last-minute changes signed into law by the California Governor on June 29. Determine whether this law applies to you. Understand what it takes to comply or validly secure an exemption. Consider your answer to the following questions:
- Do you offer hotel, restaurant, or short-term lodging facilities?
- Do you offer consumers goods or services from California, or to California residents?
- Are you going to rely on the restaurant exemption from the new law?
If you answered “yes” to any of these questions, consider a pro-active consultation to prevent unnecessary problems with the new California Junk Fee Law (as amended on Saturday, June 17, 2024).
Resources to help you avoid problems with California’s Junk Fee Law
The resources below provide the latest information on all the changes to the most significant Junk Fee regulation in California, Congress, and the FTC.
Free blog articles from the hospitality lawyers in JMBM’s Global Hospitality Group®. Extensive up-to-date blog articles, analysis and copies of the new laws and regulations.
Live Webinar (July 18, 2024) and On Demand recording. We have special passes for clients and friends of JMBM’s Global Hospitality Group®. Contact Laura Bailey
Event Details
Date: July 18, 2024
Location: Live Video-Broadcast
Time: 10 AM – 12:10 PM PST
Agenda and Registration: Click here
We have special passes available for our clients and industry friends. If you would like more information on these passes, please contact Laura Bailey at [email protected].
What Junk Fee laws and regulations are covered? –
All California Junk Fee Laws, as well as proposals in the US Congress and by the FTC are covered in our Blogs and the Webinar. So you know you are not missing anything, here is a list of the common names or references for the laws or regulations we talk about:
Consumer Legal Remedies Act (CLRA) – SB 478, SB 1524, and CC 1750, et seq.
California Junk Fee Law – SB 478, SB 1524 and CRLA, as amended
CA Honest Pricing Law – SB 478
CA Hidden Fees Statute – SB 478
CA Transparency in Short-term Lodging Law – AB 537
CA SB 478 – Honest Pricing Law, or Hidden Fees Statute
CA SB 1524 – Restaurant exception to SB 478 (and to CC 1770(a)(29)(D))
CA CC 1770 – Consumer Legal Remedies Act (CLRA)
California Unfair Business Practices – various, including CC 1770(a)
FTC Proposed Rule to Prohibit Junk Fees (adds Part 464 to 16 CFR)
HR 6543 – No Hidden FEES Act
S 2498 – Hotel Fees Transparency Act
Note: If you are a consumer with a Junk Fee issue, please do NOT contact us! We do not represent consumers. We represent owners, developers, lenders, and management of hotels, restaurants, and other hospitality-related properties. We advise them on litigation, labor, regulatory compliance, contracts, transactions, financing, development, and strategies.
See how JMBM’s Global Hospitality Group® can help you.
Click here for the latest articles on Junk Fee Litigation.
About the JMBM Global Hospitality Group®
The hospitality attorneys in the Global Hospitality Group® of Jeffer Mangels Butler & Mitchell LLP comprise the premier hospitality practice in a full-service law firm, and the most experienced legal and advisory team in the industry. Our team of seasoned hotel lawyers has helped clients with more than 4,600 hospitality properties located around the globe valued at more than $123 billion, and have worked on more than 2,700 management and franchise agreements. Our experience provides one of the most extensive virtual data bases of market terms for deals and financings. The hospitality lawyers of our team are not just great hotel lawyers—we are also hospitality consultants and business advisors, dealmakers and facilitators of the flow of capital. We help our clients find the right operator, joint venture partner or capital provider. We know who to call and how to reach them.
Jim Butler
+1 310 201 3526
JMBM
