Are Resort Fees Illegal in California? Honest Pricing Law and Remedies

Resort fees are not illegal in California, but hiding them is. Since July 1, 2024, state law has required hotels, motels, short-term rentals, and booking platforms to include every mandatory fee in the price they first show you. A hotel can still charge a $45 resort fee; it just has to be baked into the advertised rate, not sprung on you at checkout.

What California’s Honest Pricing Law Requires

The rule comes from SB 478, codified at Civil Code Section 1770(a)(29). It prohibits any business from advertising or displaying a price that leaves out mandatory fees. The only things a hotel is allowed to add on top of the listed price are government-imposed taxes, like transient occupancy tax and sales tax.1California Legislative Information. California Code CIV 1770 – Consumers Legal Remedies Act

Compliance is not satisfied by disclosing the fee somewhere later in the booking flow. The advertised price has to be the full price. Showing a $199 room rate and then adding a $45 resort fee at any later step violates the statute, even if that fee appears on the screen before you click “confirm.”2State of California – Department of Justice – Office of the Attorney General. SB 478 – Hidden Fees

The law reaches widely. Traditional hotels, vacation rentals listed on Airbnb and VRBO, and online travel agencies selling California accommodations all have to follow it. A property is free to charge whatever total it wants and to break down the components for transparency. What it cannot do is quote one number and then raise it with a mandatory add-on.2State of California – Department of Justice – Office of the Attorney General. SB 478 – Hidden Fees

A federal rule reinforces this. The FTC’s Rule on Unfair or Deceptive Fees took effect May 12, 2025, and requires short-term lodging businesses nationwide to display a total price more prominently than any other pricing figure, with every unavoidable fee included.3Federal Trade Commission. FTC Rule on Unfair or Deceptive Fees to Take Effect on May 12, 2025 For a California stay, this just means two independent legal bases now sit behind the same requirement.

Charges That Can Still Appear Separately

The Honest Pricing Law does not cap what a hotel can charge, and it does not require every single number to live inside the room rate. Some charges can still be listed on top:

  • Government taxes like transient occupancy tax and sales tax, which vary by city and county.
  • Optional services the guest can decline, such as spa treatments, room upgrades, minibar purchases, or parking when it is not required.
  • Contingent charges that depend on what the guest does after check-in, like a smoking-room penalty or a lost-key fee.

The dividing line is whether the fee is mandatory. If every guest pays a “destination fee” or “amenity fee” regardless of whether they use the pool, the gym, or the Wi-Fi, that fee is mandatory and has to be inside the advertised price.2State of California – Department of Justice – Office of the Attorney General. SB 478 – Hidden Fees

What To Do If a Hotel Adds a Hidden Resort Fee

If a California hotel still quotes you one price and bills you another, you have more than one way to push back. Pick the path that fits what you lost and how much effort you want to spend.

Dispute the Charge on Your Credit Card

The Fair Credit Billing Act lets you dispute billing errors with your credit card issuer, including amounts you did not agree to pay. If the resort fee was not in the advertised price, file a dispute. You have 60 days from the statement date on which the charge appears, so move quickly after the stay.4Federal Trade Commission. Fair Credit Billing Act

The issuer has to investigate and respond within two billing cycles. Save screenshots of the booking page and the confirmation email showing the rate you were quoted; that evidence is usually what decides the dispute.

File in Small Claims Court

For a single stay with a $30 to $75 surprise fee, a full lawsuit is overkill. California small claims court handles individual disputes up to $12,500, and no lawyer is needed. Bring your booking confirmation, your final bill, and a copy of the Honest Pricing Law. The filing fee is modest.

Send a CLRA Demand Letter

Because SB 478 sits inside the Consumers Legal Remedies Act, a hotel that hides mandatory fees violates the CLRA directly. That opens the door to actual damages, restitution, punitive damages, and attorney’s fees.5California Legislative Information. California Code CIV 1780 – Consumers Legal Remedies Act

Before filing for damages, the law requires a written demand sent by certified or registered mail, return receipt requested, that identifies the specific violation and asks the hotel to fix it. Address it to the location where the transaction happened or to the company’s principal place of business in California. If the hotel provides an appropriate remedy within 30 days, the damages claim is off the table.6California Legislative Information. California Civil Code 1782

The attorney’s-fees provision is what makes this route workable even for small amounts, because a lawyer can take the case knowing the hotel will owe fees if you win. Senior citizens and disabled consumers can recover up to an additional $5,000 if the court finds substantial harm.5California Legislative Information. California Code CIV 1780 – Consumers Legal Remedies Act

File a Complaint With Regulators

The California Attorney General’s office treats SB 478 as a priority and takes consumer complaints about hidden fees. The FTC takes complaints under its federal rule. Neither costs anything to file, and the cumulative record against a repeat-offender property is often what triggers a formal investigation and refunds.2State of California – Department of Justice – Office of the Attorney General. SB 478 – Hidden Fees7Federal Trade Commission. The Rule on Unfair or Deceptive Fees – Frequently Asked Questions Local district attorneys also run consumer protection units that can bring their own actions.

Whichever path you choose, the facts you need are the same: the price you were shown when you booked, the price you were charged, and the label the hotel put on the extra fee. Keep the screenshots.