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True Pricing to Protect Families and Consumers

When greedy corporations hide surprise fees until the end of the transaction when selling things like event tickets, cable, groceries, or apartment rental fees, they cost families an extra $90 million per year. Big food chains may make it seem like a product is more affordable when you’re actually getting less food for your money. Even families buying school meals for their children can face hidden fees. For our markets to be fair, families need to know how much they’ll spend before the end of a transaction.

Frequently Asked Questions
Who does this help?
This helps all Americans buying items in or from a state with this policy by ensuring they know exactly how much they’ll pay for purchases. True prices allow them to choose the product with the best value so they can save money.
Is this high cost for the state?
No. This policy should have little to no cost to the state.
Partners
  • Families and consumers
  • Consumer advocates
  • Ethical businesses
Opposition
  • Greedy corporations that benefit from hidden fees
Model Policy
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SECTION 1 (TITLE):
This act shall be known as the True Pricing Act
SECTION 2 (PURPOSE):
This policy requires transparent pricing for goods and services.
SECTION 3 (PROVISIONS):

a) A person engages in a deceptive trade practice when, in the course of business, vocation, or occupation, the person advertises, displays, or offers a price for goods or services that does not include all mandatory fees or surcharges. If the person who disseminates an advertisement is independent of the advertiser, the person who disseminates the advertisement is not liable for the content of the advertisement. 

b) For the purposes of this Act, “mandatory fee” includes but is not limited to a fee or surcharge that:

i) Must be paid in order to purchase the goods or services being advertised;

ii) Is not reasonably avoidable by the consumer; or

iii) A reasonable person would expect to be included in the purchase of the goods or services being advertised. 

c) For the purposes of this Act, “mandatory fee” does not include taxes imposed by a government entity on the sale, use, purchase, receipt, or delivery of the goods or services. 

d) A delivery platform is compliant with this Act if the platform satisfies all of the following requirements:

i) At the point when a consumer views and selects either a vendor or items for purchase, a delivery platform must display in a clear and conspicuous manner that an additional flat fee or percentage is charged. The disclosure must include the additional fee or percentage amount; and 

ii) After a consumer selects items for purchase, but prior to checkout, a delivery platform must display a subtotal page that itemizes the price of the menu items and the additional fee that is included in the total cost.

e) A person may charge a reasonable postage or shipping fee that is actually incurred by a consumer who has purchased a good that requires shipping.

f) A person offering goods or services in an auction where consumers can place bids on the goods or services and the total cost is indeterminable is compliant with this Act if the person discloses in a clear and conspicuous manner any mandatory fees associated with the transaction and that the total cost of the goods or services may vary. 

g) A person offering services where the total cost of a service is determined by consumer selections and preferences, or where the total cost of the service relates to distance or time, is compliant with this Act if the person discloses in a clear and conspicuous manner:

i) The factors that determine the total price

ii) Any mandatory fees associated with the transaction, and 

iii) That the total cost of the services may vary.

h) A food or beverage service establishment, including a hotel, is compliant with this Act if, in every offer or advertisement for the purchase of a good or service that includes pricing information, the total price of the good or service being offered or advertised includes a clear and conspicuous disclosure of the percentage of any automatic and mandatory gratuities charged. 

i) A person is compliant with this Act if the person providing broadband Internet access service on its own or as part of a bundle is compliant with the broadband consumer label requirements under Code of Federal Regulations, title 47, section 8.1(a).

j) Per-Unit Pricing

i) Each person who sells, offers, or displays for sale a consumer commodity at retail shall disclose:

1) The total price of the consumer commodity; and

2) The unit price of the consumer commodity if it is sold only by units or it is a prepackaged or retail-packaged consumer commodity with any of the following categories: 

(a) Foods, condiments, cooking oils, shortenings, and similar consumer commodities;

(b) Paper products, including napkins, towels, and tissues;

(c) Wrapping products, including those made of paper, plastic, and aluminum; and 

(d) Soaps, detergents, cleansing aids, deodorizing aids, and similar consumer commodities. 

ii) If a packaged consumer commodity described in this section is priced for a multiple-package purchase, the seller shall disclose the unit price of that commodity on the basis of the multiple package.

iii) The seller shall disclose the total price and unit price for each item in the following manner:

1) If the item is visible conspicuously to the consumer, by attachment of a stamp, tag, or label directly on the item or its package, or directly adjacent to the item or on the shelf on which the item is displaced; or 

2) If the item is not visible conspicuously to the consumer or if the stamp, tag, or label would not be visible conspicuously to the consumer, by a sign or list which contains the price information and is visible conspicuously to the consumer.

iv) This section does not apply to:

1) Prepackaged food which contains separately identifiable items that are separated by physical division within the package;

2) Any item sold only by prescription;

3) Any item subject to the packaging or labeling requirements of the federal Bureau of Alcohol, Tobacco and Firearms or to any pricing requirements under federal law;

4) Any item actually being sold through a vending machine; or

5) A retail sales agency which:

(a) During the preceding calendar year, sold a gross volume of consumer commodities of less than $750,000;

(b) Is not part of a company which consists of ten or more sales agencies in or out of the State;

(c) Derives less than 15 percent of its total revenues from consumer commodities subject to this subtitle; or

(d) Is owned and operated by not more than one individual and the members of their immediate family.

6)A retail sales agency which otherwise is exempt under this section nevertheless is subject to this section if, during the preceding calendar year, the company of which the sales agency is a part has a gross volume of sales of consumer commodities in excess of $30,000,000.

k) This Act is enforceable unless preempted by federal law.

l) Nothing in this Act prevents a person from offering goods or services at a discounted price from the advertised, displayed, or offered price. 

m) Enforcement 

i) A violation of this Act is an unfair, abusive, or deceptive trade practice. 

ii) A violation of this Act shall be:

1) Punishable by a fine of not less than $25 dollars nor more than $500 dollars per violation; 

2) Subject to injunctive relief and civil penalties not to exceed $2,500 for each violation as assessed and recovered in a civil action brought in the name of the people of the [State of STATE] by the Attorney General, by any district attorney, by any county counsel authorized by agreement with the district attorney in actions involving a violation of county ordinance, by any attorney of any city and county, or, with the consent of the district attorney, by a city prosecutor in any city having a full-time city prosecutor, in any court of competent jurisdiction; or,

3) Any person who sustains damages or injury as a result of any violation of section a) of this Act may sue in any court of competent jurisdiction and recover from the violator the amount of their damages, or the consideration or the value of the consideration given by the aggrieved person, reasonably attorney’s fees, and exemplary damages, not exceeding three times the value of the consideration given or damages sustained by the aggrieved person. 

n) The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.