California “All‑In Pricing” (SB 478) in 2025: The SMB Playbook — Plus the Restaurant Exception (SB 1524) & Lodging Rule (AB 537)

If you sell to consumers in California, the price you show must be the price they pay—no last‑second “junk fees.” This guide explains SB 478 (California's Honest Pricing Law), the restaurant carve-out in SB 1524, and AB 537 for hotels/short-term rentals, with a 60-minute compliance audit you can run today. See the California AG's Hidden Fees page and official SB 478 FAQs (PDF) for baseline rules.

Table of contents

• What SB 478 requires (and where it lives in the law)

• What you may exclude from the displayed price

• Restaurant exception (SB 1524): how to comply

• Hotels & short‑term rentals (AB 537): total‑price rule

• 60‑minute “All‑In Pricing” audit for SMBs

• Risk & remedies (CLRA, UCL) + real‑world enforcement trend

• FAQ (for rich results)

• Need help?

What SB 478 requires

SB 478 makes it unlawful to advertise, display, or offer a price that does not include all mandatory fees/charges (except certain government taxes and reasonable shipping for physical goods). It's a price‑transparency rule—not price control. SB 478 is codified in the Consumers Legal Remedies Act (CLRA) at Civil Code §1770(a)(29). See the AG's public guidance and FAQ.

Quick link: California DOJ's “Hidden Fees” explainer and the official SB 478 FAQs (shipping vs. handling, resales, discounts).

What you may exclude from the displayed price

• Government-imposed taxes/fees (e.g., sales tax) do not need to be in the displayed price.

• Reasonable shipping for physical goods can be separate.

• Handling is not shipping—if it's mandatory, it must be included in the displayed price.

• Optional add‑ons (gift wrap, upgrades, expedited shipping) can remain separate.

• Contingent charges (late fees, smoking fees) don't belong in the displayed price.
  All per the AG's official FAQ.

B2C vs. B2B: SB 478 targets consumer sales (personal use). It does not apply to purchases for commercial use. 

Restaurant exception (SB 1524): how to comply 

In mid‑2024 the Legislature adopted SB 1524, creating a narrow exception for mandatory fees/charges on individual food or beverage items sold directly by restaurants, bars, concessions, grocery/grocery delivery, or via banquet/catering contracts—only if the fee is clearly and conspicuously displayed with an explanation of its purpose wherever prices appear (menus, advertisements, displays). Review the committee analysis and your counsel's guidance.

Quick links:
• Legislative analysis (SB 1524): Assembly Privacy & Consumer Protection Analysis (PDF) (disclosure requirements & scope).
• Industry summary: California Restaurant Association overview (helpful context; not a substitute for the statute).

Hotels & short‑term rentals (AB 537): total‑price rule before reservation 

AB 537 (2023) requires places of short‑term lodging and platforms (e.g., OTAs, STR platforms) to display a total price including all mandatory fees before the guest reserves, ending “resort/cleaning fee” surprises. Public prosecutors can seek civil penalties up to $10,000 per violation; the law became operative July 1, 2024. See Senate Judiciary's analysis and bill text resources. 

Quick links:
• Senate Judiciary analysis (AB 537): PDF (scope, $10,000 penalty, public enforcement, operative date).
• Bill text tracker

60‑minute “All‑In Pricing” audit for SMBs 

Who: owner + marketing + web/app + POS/ops.
Goal: Fix high-risk friction points in one session; assign follow-ups same day.

1. Product pages & ads — If you display a price, it must already include all mandatory fees. Don't advertise a teaser price and add “processing/compliance/service” later. (AG FAQs).

2. Checkout flow — Remove any last‑step mandatory add‑on; if it's mandatory, bake it into the displayed price.

3. Shipping vs. handling — You may list reasonable shipping separately; handling must be included in the displayed price.

4. Menus & in‑store signage —

   • Non‑restaurants: show all‑in prices.

   • Restaurants/bars: if using a mandatory service charge, display it clearly with purpose wherever prices appear (menu pages, QR order screens, catering contracts).

5. Email/SMS/social — If you publish a number, it must be the full price (plus tax and eligible shipping). Percentage‑off promos without a numeric price are fine if not misleading.

6. Marketplaces & resales — SB 478 also covers resale listings (e.g., ticket platforms). Coordinate with platforms to ensure compliant price display.

7. Scripts & quotes — Train teams: don't say “+ $X in fees.” Quote the total price.

8. Screenshots & archive — Capture dated screenshots after fixes (your compliance receipts).

Risk & remedies (CLRA, UCL) + real‑world enforcement trend 

• Private suits: SB 478 sits within the CLRA (Civ. Code §1770 et seq.). Consumers can seek damages, injunctive relief, restitution,and attorneys' fees under Civil Code §1780—often paired with UCL claims. For statutory grounding, see §1770 (prohibited practices) and §1780 (remedies).

• Public enforcement (lodging): Under AB 537, public prosecutors may seek civil penalties up to $10,000 per violation for noncompliant lodging rate advertising.

• Trend watch: “Drip pricing” suits are already hitting high‑visibility platforms (e.g., a class action challenging campsite booking fees on the state's reservation site). Monitor headlines—plaintiffs' bars are active.

FAQ:

Does SB 478 cap what I can charge?
No. It's transparency, not price control. You can charge (and itemize) as you wish—but the posted price must include all mandatory charges (taxes and reasonable shipping may be separate).

Does SB 478 apply to B2B sales?
No. The law applies to consumer (personal‑use) transactions, not commercial use purchases. Source:

Can I show a total price and still itemize line‑items?
Yes. You may show a total and then explain what's included—just don't advertise a teaser price below that total. 

What's different for restaurants under SB 1524?
Restaurants/bars can use mandatory service charges if they're clearly and conspicuously displayed with an explanation of purpose wherever prices appear.

What's different for hotels and short‑term rentals?
AB 537 requires total price display before reservation; public prosecutors can seek up to $10,000 per violation. 

Need help?

Kolmogorov Law, P.C. helps California SMBs implement compliant, conversion‑friendly pricing across web, app, menus, and POS—plus scripts, staff training, and evidence files you can keep on hand.

Contact us today at (909) 235-6116 or by filling out the online form to schedule a free 15-minute initial consultation and take the first step toward resolving your legal dispute.

Disclaimer: This article is general information, not legal advice. Laws change and apply differently to specific facts. Consult counsel about your situation.