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California AG and state senators introduce bill to ban hidden fees

oag.ca.gov

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Re: California AG and state senators introduce bill to ban hidden fees

#161

Earlier quoted context omitted.

That and the way our income taxes work are two of the most annoying things that the anti-tax right have "won" in the US. Everyone's life is made a little worse all the time , in the name of some I-suspect-imaginary "awareness campaign" to increase resistance to taxes. In fact I doubt there'd be any less awareness if they'd just mandate that tax be itemized and given sufficient weight on receipts, and that the IRS mai…

It has way less to do with any "awareness campaign" and more to do with how tax rates are different in many municipalities that are very close to each other and how hard that makes advertising. For instance, the famous "$5 footlong" from Subway couldn't be advertised that way nationally, or even within a single state or metro area due to different taxes on prepared food.

I'm pretty skeptical there. Do you have any evidence that was a big motivation?

I'll note that the costs of labor, space, and other inputs also can vary widely across a state, so tax differences don't strike me as unsolvable. And regardless, "prices and participation may vary" is an extremely common disclaimer for ads with prices.

Re: California AG and state senators introduce bill to ban hidden fees

#163
post #33
post #20

Earlier quoted context omitted.

I agree with you on almost all of this, but I think the cleaning fee is different. It represents an actual cost for an actual activity. I think AirBnb should show initial totals with it included, so you're never surprised by it. But it shouldn't be rolled up into the nightly rate because it really is a one-off. As an example, right now I'm looking at doing an extended trip, on the order of 2-4 weeks. I just need one…

> I think AirBnb should show initial totals with it included, so you're never surprised by it. But it shouldn't be rolled up into the nightly rate because it really is a one-off. I disagree with this, and it's easily handled on the backend too. If the cleaning fee is e.g once per trip or once every few days, smear that cost across the cost of the stay for your effective nightly rate. Frankly, how much it costs to cle…

Even better, show total price not nightly rate. They'd never do that though because showing the nightly rate holds off the total sticker shock until the user has their credit card in hand.

Re: California AG and state senators introduce bill to ban hidden fees

#164

I wish they would treat sales tax as a hidden fee. Just show the actual damn price up front plzkthx.

If we had a standard sales tax, sure. But when sales taxes vary by city and county, like they do in California, it's very painful to do that -- and that's only 1 of the 50 states!

They're still having to make that calculation at the register. There's no reason they can't calculate it when making price tags.

Re: California AG and state senators introduce bill to ban hidden fees

#165
post #100

I think a lot of comments here are missing the reason as to why these hidden fees have become so much more prevalent in the past 20 or so years. The short of it is that comparison pricing is now much easier to do because of the Internet, and many, if not a majority, of shoppers will just sort by price ascending and pick the first result (or, only pick from the first couple results). Thus, there is a huge incentive fo…

>This is also a case where consumers say they want one thing, but their behavior is a different matter. For example, pretty much everyone says they prefer the full price to be shown up front in search result pages. But, as someone who is privy to a ton of A/B testing in this area, the opposite nearly always results in higher conversion, where there is a lower up-front price and fees are only tacked on during checkout…

This is exactly right. It's not hard to get better A/B results by using dark patterns and consumers will still rightfully hate it.

Re: California AG and state senators introduce bill to ban hidden fees

#166

Earlier quoted context omitted.

>If the cleaning fee is e.g once per trip or once every few days, smear that cost across the cost of the stay for your effective nightly rate. This misses the point that it's useful to have the one-time costs separated from the nightly costs so that consumers can better understand if they can get a better nightly cost by extending their stay (or even ideally from having options over those fixed costs.) It's the same…

This misses the point that it's not useful to have the one-time costs separated from the nightly costs when trying to compare options.

I think we all agree that the totals should include everything, as that makes comparison better. But I am precisely saying that there should be someplace where the legitimate one-time costs should be separated out because it is useful to me.

Re: California AG and state senators introduce bill to ban hidden fees

#167

Earlier quoted context omitted.

> It represents an actual cost for an actual activity. It really doesn't. It's been a stealth way to increase your rates for a long time now. > I think AirBnb should show initial totals with it included, so you're never surprised by it. They do, but it makes comparing rentals (both within AirBnB and across services) a pain in the ass, because it's not factored into the initial rate-per-night that you see and that the…

It is factored in here in Europe. So the issue isn't the fee itself, but that in other jurisdictions it's hidden.

Right, if it's factored in, that's fine. It'd also automatically remove the incentive to pad the cleaning fee, which is so common in the US that I expect it's hard to compete in listings without doing it (without hiding some of your margin in the cleaning fee, that is).

Re: California AG and state senators introduce bill to ban hidden fees

#168

Earlier quoted context omitted.

That and the way our income taxes work are two of the most annoying things that the anti-tax right have "won" in the US. Everyone's life is made a little worse all the time , in the name of some I-suspect-imaginary "awareness campaign" to increase resistance to taxes. In fact I doubt there'd be any less awareness if they'd just mandate that tax be itemized and given sufficient weight on receipts, and that the IRS mai…

It has way less to do with any "awareness campaign" and more to do with how tax rates are different in many municipalities that are very close to each other and how hard that makes advertising. For instance, the famous "$5 footlong" from Subway couldn't be advertised that way nationally, or even within a single state or metro area due to different taxes on prepared food.

Why is that an issue? Subway could easily find another campaign, such as “$5* footlong (*or less depending on local taxes)”, “affordable footlong”, or whatever. If your advertising campaign depends on being deceptive, I find no issue with it becoming impossible.

Re: California AG and state senators introduce bill to ban hidden fees

#169

Earlier quoted context omitted.

Airlines are an interesting an example because the FAA required them to advertise all-inclusive pricing a decade ago. The extras they charge for now (checked bags, bigger seats, nonstop flights) really are optional —- I routinely pack light and pass on any upgrades. People who need to check a bag can include that in their price comparison. For hotels, it’s fine to charge extra for access to the pool or whatever as lo…

One interesting wrinkle is sitting next to another person on your ticket. By all rights it should be optional but person after person books the no assigned seat option and then is outraged that they are not seated next to their companions.

There was an interesting article on United’s new family seating policy, allows families traveling with children under 12 to sit together automatically with no added fees by default. Sounded like a decent way of identifying when sitting together actually would be optional for most people. https://viewfromthewing.com/uniteds-new-family-seating-polic...

Re: California AG and state senators introduce bill to ban hidden fees

#170
post #70

Earlier quoted context omitted.

> to taxes not in the sale price This gets complicated and there's good reason. The taxes depend on where you take possession of the goods. If you purchase an item and walk up to the checkout counter, you pay the taxes there. On the other hand, if you are buying lumber in Kansas City, KS to be delivered in Kanas City, MO - you pay the MO taxes (4.225%) rather than the KS taxes (6.5%). So, putting the taxes on the lum…

> if you are buying lumber in Kansas City, KS to be delivered in Kanas City, MO - you pay the MO taxes (4.225%) rather than the KS taxes (6.5%) It gets even better. In some places (e.g. Washington) you pay use tax[0][1] if the use tax would be higher than the sales tax you did pay. So if for example you buy something in Oregon and bring it home to Washington, you pay all of the use tax. If you bought something in a s…

Well, you're supposed to. I expect very few consumers pay the use tax except in situations like purchasing a car where they can't hide it.
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