ARTICLE
31 August 2026

Court Distinguishes Between Mandatory And Optional Fees In CA Honest Pricing Law Suit (Podcast)

KD
Kelley Drye & Warren LLP

Contributor

Kelley Drye & Warren LLP is an AmLaw 200, Chambers ranked, full-service law firm of more than 350 attorneys and other professionals. For more than 180 years, Kelley Drye has provided legal counsel carefully connected to our client’s business strategies and has measured success by the real value we create.
A California court recently interpreted the state's Honest Pricing Law, drawing a critical line between mandatory fees that must be disclosed upfront in advertised prices and optional charges that consumers can choose to avoid. This decision provides essential clarity for businesses offering add-ons, service fees, or other charges during the purchasing process, as enforcement around hidden fees intensifies across the state.
United States Consumer Protection

What makes a fee part of the advertised price, and when can it be treated as optional? In this episode, we unpack a California court’s recent decision interpreting the state’s Honest Pricing Law and its distinction between mandatory fees that must be included in an advertised price and optional charges that consumers can avoid. The case offers important guidance for businesses navigating California’s increasingly strict rules on pricing transparency, particularly when offering add-ons, service fees, or other charges that may arise during the purchasing process. As litigation and enforcement around hidden fees continue to grow, the decision is a timely reminder that how a fee is presented, and whether consumers can truly avoid it, can make all the difference.

Hosted by Simone Roach. Based on a blog post by Gonzalo E. Mon.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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