Provides with respect to hidden fees charged to consumers
Provides with respect to hidden fees charged to consumers
House Bill 617 enacts Louisiana Revised Statutes section 1429.1 to prohibit suppliers from advertising or displaying prices for goods or services without clearly and conspicuously displaying the total price, including all mandatory fees or surcharges. The statute creates a new unfair trade practice violation focused on hidden fees in consumer transactions. It establishes definitions of "good," "price-variable supplier," and "supplier" to delineate the scope of application. The core mechanism requires that any advertised or displayed price must reflect the complete cost to the consumer at the point of advertisement or display, with limited exceptions for certain business models where pricing components may be shown separately or where specific compliance frameworks already exist under federal law.
The legislation impacts virtually all businesses engaged in consumer transactions that advertise prices, from retail establishments to service providers. Restaurants and hotels must disclose automatic or mandatory gratuities and service fees in their advertisements and offers that include pricing. Price-variable suppliers such as food delivery platforms and ride-sharing services must disclose the factors that determine final pricing, any mandatory fees, and a statement that total costs may vary. Broadband internet providers, cable operators, direct broadcast satellite providers, and live-event ticket providers that already comply with applicable federal regulations are exempted from the state's requirements. Consumers benefit from enhanced transparency at the point of initial price presentation, eliminating the surprise of discovering mandatory add-on fees only after selecting a product or service.
This statute operates within Louisiana's existing unfair trade practices framework codified in Title 51 of the Louisiana Revised Statutes and complements the Louisiana Consumer Protection Act. The bill's classification as an unfair or deceptive trade practice means violations potentially subject suppliers to enforcement action and consumer remedies available under Louisiana's consumer protection statutes. The exemptions for federally regulated industries acknowledge the supremacy of federal law and existing federal transparency requirements under the Communications Act, the Cable Television Consumer Protection and Competition Act, and Federal Trade Commission regulations governing broadband disclosures and live-event ticket sales. The statute preserves flexibility for hybrid suppliers by allowing separate display of pricing where goods and services are offered together, recognizing that some pricing structures cannot practically be consolidated into a single figure at the advertising stage.
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