23 July 2024
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Click here for the latest articles on Junk Fee Litigation.
NOTE: We represent the owners and operators of hotels, restaurants, and other hospitality facilities. We do not represent consumers making claims against such businesses. When it comes to Junk Fee laws at the State or National level, we help the owners and operators of the hotels, restaurants and hospitality facilities to understand and comply with Junk Fee Laws. When claims are made against them by consumers of competitors, we advise on strategies and defense of such claims.
On July 1, 2024, the first comprehensive Junk Fee Law in the United States took effect in California. It prohibits drip pricing, which involves advertising a price that fails to include all mandatory charges and fees a consumer must pay. It requires upfront disclosure of the total price of goods or services upon first contact with the consumer. It applies to the sale of most goods and services, with only a few exceptions. A last-minute restaurant exemption was rushed into law — only two days before the law’s effective date.
In a recent program hosted by myLawCLE, junk fee compliance and defense lawyers Jim Butler and Mark Adams presented an update on California and federal regulations regarding junk fees. SB 478, SB 1524, and AB 537 are all in the rearview mirror and the final impact of these bills on our current law is a leading topic of discussion during the webinar. Jim and Mark also analyzed HR 6543 and S 2498, and the FTC’s proposed rule on drip pricing and misleading business practices.
In other words, this course includesthe latest information on all the changes to the most significant Junk Fee regulation in California, Congress, and the FTC.
This webinar took place on Thursday, July 18, 2024. To access an on demand recording, click here.
We have special free 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.
So you know you are not missing anything, here is a list of the common names or references for the laws or regulations covered in our Junk Fee program:
- 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))
- California CC 1770 – Consumer Legal Remedies Act (CLRA)
- California Unfair Business Practices – various, including CC 1770(a)
- HR 6543 – No Hidden FEES Act
- S 2498 – Hotel Fees Transparency Act
The webinar provided takeaways for and answered questions about the following:
- An introduction for beginners and details “deep divers”
- Special insights for Hotels, Restaurants, Retailers, and other advertisers
- The Restaurant exception: relief, unintended consequences or trap for the unwary?
- What are the penalties for violation? Who can sue me?
- How to spot and use the good things that the new law brings
We have special free 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.
JMBM’s Global Hospitality Group has experience defending consumer junk fee claims, consumer lawsuits and consumer class actions against hotels, restaurants and hospitality businesses. Contact us to see how we can help.
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.
This is Jim Butler, author of www.HotelLawBlog.com and founding partner of JMBM and JMBM’s Global Hospitality Group®. We provide business and legal advice to hotel owners, developers, independent operators, and investors. This advice covers critical hotel issues such as hotel purchase, sale, development, financing, franchise, management, ADA, and IP matters. We also have compelling experience in hotel litigation, union avoidance and union negotiations, and cybersecurity & data privacy.
JMBM’s Global Hospitality Group® has been involved in more than $125 billion of hotel transactions and more than 4,700 hotel properties located around the globe. Contact me at +1-310-201-3526 or jbutler@jmbm.com to discuss how we can help.
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