The proposed bill aims to enhance pricing transparency and protect consumers from deceptive practices across various sectors, including housing and retail services.
Key Provisions:
Total Price Disclosure: Businesses must clearly display the full price of goods, services, or properties, excluding government and shipping charges. This ensures consumers are aware of the complete cost upfront, preventing unexpected fees.
Accurate Pricing Representation: It's prohibited to misrepresent pricing details. Any additional charges not included in the total price must be clearly explained, detailing their nature and purpose.
Landlord Fee Restrictions: Landlords are barred from imposing certain fees on tenants, particularly those that are unjustified or not previously disclosed. This protects tenants from unexpected or excessive charges beyond their agreed rent.
Exceptions:
Food and Beverage Establishments: Restaurants can include mandatory service charges if they disclose the amount, its purpose, and ensure it's distributed solely to non-managerial staff, complying with relevant laws.
Federal Compliance: Businesses adhering to applicable federal pricing transparency laws are considered compliant with this state requirement.
Enforcement and Penalties:
Violations are classified as deceptive, unfair, and unconscionable acts. Affected individuals can pursue civil action, demanding reimbursement or cessation of the unlawful charges. If the violator doesn't comply within 14 days, they may face penalties of up to three times the actual damages or a monetary range between $100 and $1,000 per violation.
In summary, this bill seeks to ensure consumers receive transparent pricing information, safeguarding them from hidden fees and deceptive charges, while holding businesses and landlords accountable for their pricing practices.
Summary
Section 2 of the bill: •
Prohibits a person from offering, displaying, or advertising pricing information for a good, service, or property unless the person discloses the maximum total (total price) of all amounts that a person may pay for the good, service, or property, not including a government charge or shipping charge (total price disclosure requirement);
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Prohibits a person from misrepresenting the nature and purpose of pricing information for a good, service, or property;
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Requires a person to disclose the nature and purpose of pricing information for a good, service, or property that is not part of the total price; and
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Prohibits a landlord from requiring a tenant to pay certain fees, charges, or amounts.
A person does not violate the total price disclosure requirement if
the person does not use deceptive, unfair, and unconscionable acts or practices related to the pricing of goods, services, or property and if the person:
•
Is a food and beverage service establishment that: •
Includes a disclosure in the total price for a good or service the amount of any mandatory service charge and how the mandatory service charge is distributed; and
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Distributes any mandatory service charge exclusively to nonmanagerial employees in accordance with applicable laws; or
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Can demonstrate that the person is governed by and compliant with applicable federal law regarding pricing transparency.
A violation of the above prohibitions and requirement (violation)
constitutes a deceptive, unfair, and unconscionable act or practice. Section 2 also, along with any other remedies available by law or
in equity, allows a person aggrieved by a violation to bring a civil action and send a written demand for the violation. If a person declines to make full legal tender of all fees, charges, amounts, or damages demanded or refuses to cease charging the aggrieved person within 14 days after receiving the written demand, the person is liable for the greater of:
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3 times the actual damages incurred; or
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At least $100 to no more than $1,000 per person per violation.
Current law prohibits a written rental agreement from including a
provision requiring a tenant to pay a markup or fee for a service for which the landlord is billed by a third party. Section 3 changes that provision to prohibit the inclusion of a provision in a written rental agreement that requires a tenant to pay a fee that is a violation.