The California legislature recently passed a fee disclosure bill. This bill was championed by the California Attorney General Office and was signed by the Governor. Whilethe bill doesn't explicitly address movie theaters, as written it could have broader implications than intended, including impacting g theater operations.
We asked NATO legal counsel and a couple of other lawyers to review the law and provide their interpretation for movie theaters. All agree this law is like the New Yorkdisclosure law and will require theaters to decide how they disclose fees for online purchases.
The legislation amends Section 1770 of the Civil Code and pertains to the disclosure and advertising of fees and charges in transactions. Specifically, paragraph (29) of subdivision (a) prohibits “Advertising, displaying, or offering a price for a good or service that does not include all mandatory fees or charges…”
Last month, our lobbyist engaged with the bill's proponents who assured us that the movie theater industry was not their focus. We conveyed our concerns about the impact on movie theaters and sought an exemption. Despite our efforts and Fandango's advocacy for an exclusion, the drafters remained resistant to any industry-specific exemptions.
Now that the law is signed, it will go into effect July 1, 2024. It is recommended that you consult your legal counsel, review the law language, and get recommendations to be compliant. https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240SB478
In the interim, and in the interest of providing you an option to comply with the law if subsequently deemed to apply to movie theaters, below are examples of ticket pricing format designed to comply with a similar law adopted in New York. Moving forward, NATO of CA/NV will explore potential legislative solutions and attempt to confirm that this pricing structure aligns with the new bill's mandate.
