State Junk Fee Laws: California SB 478 and Surcharge Transparency Requirements
Reference for state laws that require upfront disclosure of total prices and restrict how surcharges or fees are presented. California SB 478 and similar laws require that advertised prices include mandatory fees.
This is a regulated fee — required or governed by law in the jurisdictions below.
Overview
Several U.S. states have enacted or proposed laws targeting "junk fees" and drip pricing. California's SB 478 (Effective July 1, 2024) requires that any advertised or offered price include all mandatory fees, charges, and surcharges. Optional fees may be added only if clearly and conspicuously disclosed before the consumer commits. Other states are considering similar legislation. For e-commerce, this means checkout flows must show total price including mandatory fees (e.g. regulatory fees, deposits) in the advertised or displayed price, or disclose them clearly before payment. Optional surcharges (e.g. optional service fees) require explicit disclosure and consent. This directly affects how fee apps display and add fees.
Fee schedule by jurisdiction
2 jurisdictions with active fee requirements.
| Jurisdiction | Fee |
|---|---|
| California (SB 478) | N/A — disclosure requirement |
| Other states (emerging) | N/A — disclosure and transparency |
California (SB 478)
N/A — disclosure requirement
Goods and services offered to California consumers
Advertised price must include all mandatory fees. Optional fees clearly disclosed before being added. Effective July 1, 2024.
Other states (emerging)
N/A — disclosure and transparency
Varies by state
Several states have or are considering similar junk-fee or total-price disclosure laws. Monitor state AG and legislature updates.
Enforcement
Violations of California SB 478 can result in enforcement by the California Attorney General or district attorneys; civil penalties and injunctive relief may apply. Consumer remedies may also be available.
Official sources
Shopify compliance
This is a mandatory fee — merchants selling in covered jurisdictions are legally required to collect it. Shopify requires that mandatory fees be clearly disclosed to customers before checkout. Use a Shopify app like Magical Fees to automate collection and ensure compliance.
This information is maintained by the Magical Apps team and reviewed semi-annually. Always consult official government sources for the most current requirements.
Quick facts
- Regulation
- State Junk Fee and Price Disclosure Laws
- Country
- United States
- Jurisdictions
- 2
- Category
- Regulatory Surcharges
Explore U.S. State Junk Fee and Surcharge Disclosure Laws in practice
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Related use cases
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More regulatory surcharges
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Australian Payment Method Surcharges
Australia allows payment method surcharges but caps them at the merchant's actual cost of accepting that payment type. The ban on excessive surcharges applies to Visa, Mastercard, and EFTPOS; American Express, PayPal, and BPAY are not regulated. The ACCC enforces compliance.
View fee schedule →CanadaCanadian Payment Method Surcharges
In Canada there is no federal ban on payment method surcharges. Merchants commonly add surcharges for credit card, PayPal, Klarna, and other alternative payment methods with clear disclosure. Card network and payment provider rules apply.
View fee schedule →GermanyGermany Payment Surcharge Rules
Under EU PSD2 and the Interchange Fee Regulation, merchants in Germany cannot add surcharges on card-based payments (debit and credit cards). Surcharges on PayPal, Klarna, and other payment methods not covered by the card surcharge ban are not prohibited at EU level; merchants may add them with clear disclosure where permitted by German consumer law.
View fee schedule →SpainSpain Payment Surcharge Rules
Under EU PSD2 and the Interchange Fee Regulation, merchants in Spain cannot add surcharges on card-based payments (debit and credit cards). Surcharges on PayPal, Klarna, and other payment methods not covered by the card surcharge ban are not prohibited at EU level; merchants may add them with clear disclosure where permitted by Spanish consumer law.
View fee schedule →European UnionEU VAT for E-Commerce (OSS and IOSS)
Reference for EU VAT rules for e-commerce: the One-Stop Shop (OSS) for distance sales within the EU and the Import One-Stop Shop (IOSS) for low-value imports (consignment value ≤ €150). Non-EU sellers must register and charge VAT; merchants often display it as a separate line at checkout.
View fee schedule →FranceFrance Payment Surcharge Rules
Under EU PSD2 and the Interchange Fee Regulation, merchants in France cannot add surcharges on card-based payments (debit and credit cards). Surcharges on PayPal, Klarna, and other payment methods not covered by the card surcharge ban are not prohibited at EU level; merchants may add them with clear disclosure where permitted by French consumer law.
View fee schedule →Ready to get started?
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