SB 478: Consumers Legal Remedies Act: advertisements.

The False Advertising Law makes it a crime for a person or a firm, corporation, or association, or any employee thereof, to engage in specified false or misleading advertising practices. The Unfair Competition Law makes various unfair competition practices unlawful, including any unlawful, unfair, or fraudulent business act or practice and unfair, deceptive, untrue, or misleading advertising.

The Consumers Legal Remedies Act makes unlawful certain unfair methods of competition and certain unfair or deceptive acts or practices undertaken by a person in a transaction intended to result or that results in the sale or lease of goods or services to a consumer, including advertising goods or services with intent not to sell them as advertised. Existing law authorizes a consumer who suffers damage as a result of the use or employment by a person of a method, act, or practice declared to be unlawful by that provision to bring an action against that person to recover or obtain certain relief, including actual damages of at least $1,000.

This bill would, beginning on July 1, 2024, with specified exceptions, additionally make unlawful advertising, displaying, or offering a price for a good or service that does not include all mandatory fees or charges other than taxes or fees imposed by a government on the transaction, as specified. The bill would provide that assessments made pursuant to the California Tourism Marketing Act and the Parking and Business Improvement Area Law of 1989, and business assessments made pursuant to the Property and Business Improvement District Law of 1994, are fees imposed by a government on the transaction for purposes of these provisions.

Existing law authorizes vehicle rental companies, when providing a quote or imposing charges for a rental, to separately state specified rates and charges that a renter must pay to hire or lease the vehicle for the period of time to which the rental rate applies. Existing law prohibits a rental company from imposing charges or fees in addition to the rental rate unless specified conditions are met. Existing law requires the rate advertisements of vehicle rental companies to include a disclaimer providing that additional mandatory charges may be imposed, as specified.

This bill would provide that a rental company is not in violation of unlawful advertising, displaying, or offering a price for a good or service for excluding from the advertised, displayed, or offered price of a rental vehicle charges that are disclosed to the consumer in compliance with the above-described provisions.

Existing law requires any solicitation to enter into a lease contract that includes the amount of any payment, as specified, to also state, among other things, Plus tax and license or a substantially similar statement, if amounts due for use tax, license fees, and registration fees are not included in the payments.

This bill would specify that a lessor is not in violation of this prohibition against unlawfully advertising, displaying, or offering a price for a good or service because it excludes from the advertised, displayed, or offered lease payment a fee or charge in accordance with the provision described above.

Existing law imposes specified requirements on dealers of motor vehicles and motorcycles sold or leased in this state. Existing law prohibits a holder of a dealers license from doing specified acts, including advertising the total price of a vehicle without including all costs to the purchaser at time of sale, except taxes, vehicle registration fees, the California tire fee, emission testing charges not exceeding $50, actual fees charged for certificates, finance charges, and any dealer document processing charge or charge to electronically register or transfer the vehicle.

This bill would specify that a holder of a dealers license is not in violation of unlawful advertising, displaying, or offering a price for a good or service for excluding from the advertised, displayed, or offered price of a vehicle a tax, a vehicle registration fee, the California tire fee, an emission testing charge not exceeding $50, an actual fee charged for a certificate, a finance charge, or a dealer document processing charge or charge to electronically register or transfer the vehicle.

Existing law imposes specified requirements on manufacturers of motor vehicles and motorcycles and prohibits a person from acting as a motor vehicle manufacturer without having first been issued a license by the Department of Motor Vehicles, as specified.

This bill would specify that a motor vehicle manufacturer, or any other person, that advertises a motor vehicle manufacturers suggested retail price (MSRP) set by an automobile manufacturer, or lease payments based upon an MSRP, does not, by doing so, violate the prohibition described above relating to unlawful advertising, displaying, or offering a price for a good or service.