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Say goodbye to hidden fees and surcharges in California

State Bill 478 makes it illegal to charge so-called “junk fees” to artificially lower prices.

SAN DIEGO — Starting this summer, hidden fees at restaurants will be a thing of the past in California.

A new state law is cracking down on surprise surcharges many people have noticed added to their tabs.

Those surcharges have become a method restaurants use to lower costs and enhance employee income, however many consumers feel taken advantage of because of the lack of transparency.

San Diegans say they're glad to get rid of these unexpected costs the next time they dine out.

“Fees are getting a little out of control," said San Diego resident, Matt Ewin.

Starting July 1, under State Bill 478, it will be illegal to charge so-called “junk fees” or bury added costs to artificially lower prices. It’s a practice seen in many industries, including restaurants.

"I’m on a fixed income, large family and it’s really hard. You just don’t expect them to charge you extra for whatever they think they need to charge you for other than the food that you buy. I think it’s fantastic," said resident, Ronda Ludwig, who agrees with the new law.

San Diegans say they’re glad to see the state cracking down on hidden fees.

“I barely get enough money with working everyday. And then groceries cost money and to just enjoy time out with my family is expensive and to add certain fees that we don’t even expect, it’s scary," said San Diegan, Maria Verdugo.

"We live in California, it’s expensive enough and we go out to try to have a good time with the limited money we have and to be charged extra is ridiculous," added Ludwig.

Many restaurants have added the extra charges to help boost staff wages and keep costs low, but many say they feel it’s unfair for consumers to have to ‘pay up.’

"If we don’t know what we’re paying for, something that we don’t know of, some families can’t go out," said Verdugo.

"A lot of times they’re not advertised appropriately whether it’s on the menus or a sign when you walk in the door," said Ewin.

San Diegans say they want to see more restaurants be transparent with customers.

“As a customer, as long as everything is transparent and it’s advertised appropriately you can make the decision yourself  if you want to pay the extra fees or you can find another restaurant to go to," added Ewin.

Lawmakers say the law is part of a broader effort to eliminate surcharges. It also applies to other things like concert tickets and hotel resort fees.

Restaurants will still be allowed to raise prices on menu items to cover costs.

WATCH RELATED: Cracking down on 'junk fees' on the state & federal levels

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