Starting today 1is In July, a new law went into effect in California, making the practice of hidden fees illegal and requiring cruise lines, among other things, to display all mandatory fees payable in the cruise’s listed price.
Here is what the California Department of Justice announces:
« From 1is July 2024, the Honest Pricing Law or Hidden Fees Statute, SB 478, 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, except for certain government taxes and shipping costs.
« SB 478 is a price transparency bill. The law does not change the price a business can charge or what can be included in that cost. The law simply requires that the quoted price include all mandatory fees. »
In other words, this new California law on honest pricing now requires companies to disclose all the costs that the purchase involves, in advance, so that the price that the consumer sees is the one that he pays.
“This is a ban on so-called “junk fees,” hidden fees added to the advertised or quoted price, for everything from hotel rooms to airline tickets to concert tickets and food in restaurants” reports Forbes.
A law that applies beyond California
“For cruise enthusiasts, the impact of the law extends well beyond California. Starting on 1is July, the world’s largest cruise operators – Carnival, Norwegian and Royal Caribbean – will begin disclosing in advance all taxes, port fees and other mandatory charges on all cruises, regardless of their place of origin,” adds Forbes.
What about Canada?
At this time, it is not explicitly stated whether this law will have jurisdiction and/or any impact on the display of prices as far as Canada, for example on Canadian digital platforms.
However, USA Today reports Norwegian Cruise Line’s reaction to the announcement of this new law:
“Norwegian Cruise Line will change the way it displays prices, incorporating “applicable taxes, fees and port charges” into advertised prices in the United States and Canada. “ This change will only impact how we display our prices and will not affect the prices our customers pay to enjoy a cruise with us or the portion of the cruise fare that is commissionable for our travel partners“, a spokesperson for the company said in a statement.
Reactions from other cruise lines
Still according to USA Today, here is what other cruise lines announced:
-Royal Caribbean International and Celebrity Cruises will change the way they display prices in the United States. Customers will now see prices that include the cruise fare selected and all required taxes and fees;
-MSC Cruises has added government fees and taxes to overall advertised prices for U.S. bookings. “These costs are now transparently incorporated into the total advertised price,” a spokesperson said in a statement;
-Disney Cruise Line stressed complying with the law;
-Carnival Corporation Carnival Cruise Line, Princess Cruises, Holland America Line and others) has also made a change nationally to ensure consistency in advertised pricing, according to a company spokesperson. “The good news is that the final price paid has not changed, just the way it is displayed,” the company said in a statement.
