California lawmakers attempt crackdown on hidden fees

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California lawmakers attempt crackdown on hidden fees
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A growing body of research mostly shows that people spend more when fees are revealed later.

Figuring out the full price of a rental car or hotel can feel like a journey with unexpected twists and turns. A group of California state lawmakers has proposed a raft of bills that would require companies in several industries — including live events and apartment rentals — to be more transparent about total prices. Research mostly shows that people spend more when fees are tacked on to the end of a purchase compared with when all-inclusive prices are listed up front.

Teeter, a Sacramento resident and Kings fan, said he’s bought sports tickets before on other platforms, but he didn’t remember the fees being “that outrageous,” he said. “They don’t do enough to justify that fee,” he said. “I think it’s a ripoff.” He wishes the total price was clear on the front end, he said. Once you get far enough into the booking process to see the fees, most people, he said, are already committed to going.

Before executives switched back in 2015, Tadelis and some colleagues got permission to run an experiment, revealing fees at checkout for half of Stubhub customers while maintaining all-in pricing for the rest. They In general, though, the finding that people spend less when they’re presented with an all-inclusive price is “very consistent,” Tadelis wrote in an email.

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