SACRAMENTO, Calif. – July 1, 2024 –
Cutter Law, a law firm dedicated to protecting consumer rights, and Travelers United, a non-profit consumer protection organization committed to improving the travel experience of all Americans, today announced a strategic initiative to address enforcement of a new provision in California’s Consumer Legal Remedies Act (CLRA) that bans junk fee practices and provides consumers a tool to hold companies that are in violation of the new law accountable.
Effective today, the CLRA expressly bans “junk fees,” prohibiting businesses from “[a]dvertising, displaying, or offering a price for a good or service that does not include all mandatory fees” in the initially displayed price. The new law mandates that businesses disclose all mandatory fees upfront, prohibiting the practice of hidden “junk fees” at the point of sale.
“The law requires that the price you see is the price you get. We are committed to ensuring that the junk fee ban is implemented effectively and that consumers are protected from unfair and deceptive pricing practices.”
– Wes Griffith, Head of the Consumer Class Action Practice Group at Cutter Law and Co-Chair of the Junk Fees Task Force.
The new law affects a wide range of businesses, including hotels, short term vacation rental companies, long distance bus services, concerts and sporting events, and online and in-person retail, among others. An exemption for restaurants was signed into law just days before the ban was set to take effect.
The Junk Fees Task Force will provide consumers the ability to report businesses in violation of the new law. If a consumer believes they have been charged a junk fee after July 1, 2024, they can report the business here.
The Junk Fees Task Force will play a pivotal role in:
- Supporting Consumers: Offer online resources to assist consumers in understanding their rights under the new law and how to identify and report violations.
- Monitoring Compliance: Monitor compliance and ensure businesses adhere to the law.
- Advocacy and Outreach: Engage with community organizations, media outlets, and policymakers to raise awareness about the importance of junk fee ban and its benefits to consumers.
Travelers United was instrumental in passing the new law.
“Junk fees are no longer just deceptive. There is now no question that junk fees are illegal in California,” said Lauren Wolfe, Travelers United’s Chief Legal Officer. “We worked hard with the California legislature to implement the junk fee ban, and while we hope that businesses will comply with these new legal requirements on their own, Travelers United is also prepared to engage in litigation to enforce the law where needed.”
Consumers who believe they have been charged a junk fee are encouraged to report the offending business. In some instances, consumers may still have a claim for junk fees charged before July 1, 2024.
About Cutter Law, P.C.
Cutter Law, P.C. is a law firm based in Sacramento, California that focuses on protecting Americans from abusive corporate practices, including through class action lawsuits. The firm is known for its dedicated advocacy on behalf of clients who have been wronged or harmed due to negligence, defective products, and corporate greed. With a team of experienced attorneys, Cutter Law provides comprehensive legal services to achieve justice for its clients.
About Travelers United
Travelers United’s mission is to identify and promote ways to improve and enhance travel for consumers across all models of travel – airlines, rental cars, cruise lines, rail and bus transportation and accommodation. Travelers United is the only 501C3, non-profit organization that represents all travelers. Based in Washington, DC, and registered in California, Travelers United works tirelessly with the Department of Transportation, Federal Aviation Administration, Congress, the California legislature, travel regulators, and travel stakeholders. Travelers United testifies regularly before Senate and House committees and discusses consumer issues with travel associations that represent all modes of travel.
