By Jim Butler and the Global Hospitality Group®
Hotel Lawyers | Authors of www.HotelLawBlog.com
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 29, 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
REGISTER NOW
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 lbailey@jmbm.com.
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.
Mark S. Adams, Hotel Dispute Lawyer, is an experienced trial lawyer and a senior member of JMBM’s Global Hospitality Group®. A primary focus of Mark’s practice is devoted to representing clients on hundreds of matters involving Hospitality Litigation, Arbitration & Dispute Resolution – from avoiding litigation to conducting complex, multi-state litigation, arbitration, and mediation.
Mark’s expertise is in business litigation involving contracts, corporate and partnership disputes, and hospitality disputes and litigation. On behalf of hotel and resort owners, Mark has successfully litigated the termination of long-term, no-cut, hotel management agreements, franchise agreements, fiduciary duty issues, investor-owner disputes, TOT assessments, and more. He has wide-ranging trial experience in various commercial disputes, including complex multi-party litigation and class actions. He has tried numerous cases in state courts, federal courts, and domestic and international arbitrations and is a frequent author and speaker on trial practice. Forbes, Reuters, and other publications have covered Mark’s trial wins. He obtained two of California’s 50 largest jury verdicts in the same year.
Mark has taken or defended nearly 1,000 depositions throughout North America, Europe, and the Middle East. The Wall Street Journal has quoted him as an expert on noncompete agreements. For more information, contact Mark at 949.623.7230 or markadams@jmbm.com.
