California’s new “Honest Pricing Law” requires cruise companies to be transparent about their fees

• California’s Honest Pricing Law will take effect on July 1, 2024.

• By law, it is illegal for companies to list a price that does not include all fees.

• Cruise companies like Carnival Corp. need to be more open about their pricing.

A new law in California will force cruise lines to be more transparent about their prices, supporting the Biden administration's crusade against junk fees.

Senate Bill 478, also known as the “Honest Pricing Act,” takes effect on July 1. The law makes it illegal for businesses to list prices for goods or services that do not include all required fees or costs.

A press release from the California Attorney General said the Price Transparency Act “protects consumers from misleading price advertising and enables them to make an informed decision by seeing the total price of goods or services before they receive the bill.”

The new law will impact the travel industry, including cruise lines operating in California. Companies like Royal Caribbean International and Norwegian Cruise Line will have to make taxes, port fees and other costs clear to customers up front, according to the Washington Post.

A representative of Carnival Corp. told the newspaper that it would adhere to the guidelines of the “Honest Pricing Law.” Carnival Corp. is the parent company of brands such as Carnival Cruise Line, Princess Cruises and Holland America.

“Although this is a California state law, we are making this change statewide to ensure our advertised prices are consistent no matter where guests book their cruise,” the statement said.

The spokesman said that from now on, total prices would include additional costs that were previously “listed separately for the consumer’s information.”

According to the outlet, Norwegian Cruise Lines is still planning its next steps.

A Royal Caribbean spokesperson confirmed the policy change to Business Insider.

“Guests booking with Royal Caribbean International and Celebrity Cruises will now see prices that include the selected cruise fare and all required taxes and fees,” the statement said. “We are also supporting our travel partners across the country in advance of this upcoming change.”

Representatives for Carnival Corp. and Norwegian Cruise Line did not immediately respond to Business Insider's request for comment.

The California Attorney General's press release said the Honest Pricing Law comes as the Biden administration continues to crack down on hidden fees, also known as “junk fees.” The Biden administration first announced its fight against hidden fees in October 2022.

In October 2023, the Biden administration announced that it would require banks and credit unions to provide basic information to their customers without charging fees.

The Federal Trade Commission also proposed a rule in October 2023 that would ban hidden fees and require all companies to disclose the full price of a good or service up front.

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