OAKLAND — California Attorney General Rob Bonta today issued a statement in response to Senate Bill 478 (SB 478), a bill that he sponsored, being signed into law by Governor Gavin Newsom. Coauthored by Senator Bill Dodd (D-Napa) and Senator Nancy Skinner (D-Berkeley), the legislation will prohibit hidden fees (also called ‘junk fees’) in California beginning on July 1, 2024.
I’ve no doubt it’s easier for companies, but I don’t really care about making advertising easier for them. I prefer to make life easier for consumers. Regional taxes and fees and levies aren’t unique to America. How they handle this in other countries is either regional advertising or normalising the price nationally and potentially eating a loss in some high tax areas. The price can also settle a little higher in some regions if the product has low elasticity of demand. Either way, it gives consumers much more information up front.
I’ve no doubt it’s easier for companies, but I don’t really care about making advertising easier for them. I prefer to make life easier for consumers. Regional taxes and fees and levies aren’t unique to America. How they handle this in other countries is either regional advertising or normalising the price nationally and potentially eating a loss in some high tax areas. The price can also settle a little higher in some regions if the product has low elasticity of demand. Either way, it gives consumers much more information up front.