The Daily Delegate

In California, prices are not always what they seem, or are displayed untruthfully. With this new bill, the deception from sellers will be taken down. This bill proposes a law that prohibits any particular method of determining prices for goods or services, including algorithmic or dynamic pricing. This act is intended to regulate how prices are advertised, displayed, or offered. The act of prohibiting drip pricing will contribute to honest pricing and 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.

All retailers operating in California must display a full price of goods and service, which include the applicable sales tax. The displayed price must be the total amount the consumer is required to pay. This will be enforced through the California Department of Consumer Affairs (DCA) will oversee the implementation of this Act. DCA agents are authorized to inspect retail locations, websites and other sales platforms to ensure compliance within retailers. For those who don’t follow this act the Penalties for non-compliance are a warning, a fine, a bigger fine, and then after every year of non-compliance (if this behavior continues), the $100k will compound by 10%.

This bill will create more realistic prices for consumers and promote fairness in pricing. This will lead to more trust between consumer and retailer and allow for transparency.