Hidden Fee Law Takes Effect Monday, Gov. Signs Bill Clarifying Gratuity Does Not Apply

Waiter carrying plates with meat dish

California’s new hidden fees law, SB 478, takes effect Monday, July 1, 2024. This new law makes it illegal for businesses to advertise or list a price for a good or service that does not include all required fees or charges other than food service gratuities, certain government taxes, and shipping costs. The Governor today signed a CAPA-supported bill that clarifies that the state’s new hidden fees law does not apply to gratuity for food service.

The Attorney General developed this fact sheet to help businesses understand how to comply with this new law.

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