California SB 478 Honest Pricing Law has reset how cannabis and hemp beverage operators—dispensaries, delivery, bars, and event venues—must present prices in 2025. The state is moving aggressively to flush so-called “junk fees” from consumer transactions, with direct impact across the entire legal cannabis, hemp, and infused beverage ecosystem. Whether you’re refreshing dispensary menus, structuring ecommerce checkouts, or handling that $2 venue surcharge for a THC seltzer at a festival, SB 478 now governs how you communicate price—both online and in person.
What Is California SB 478 and Why It Matters in 2025
SB 478, also known as the "Honest Pricing Law" or "Hidden Fees Law," has been enforceable for consumer sales since July 1, 2024 (see the California DOJ overview). The law bans common “drip pricing” practices: any advertised price for goods or services must include all mandatory fees and charges, except for government-imposed taxes or reasonable, optional shipping costs. The rule goes far beyond conventional cannabis regs—it applies to all sales to California consumers, no matter the sector or business size.
For the cannabis and hemp beverage industry, this means:
- No more tacking on “mandatory” per-item surcharges, service or venue fees, or convenience charges at checkout that aren’t prominently included in the listed price.
- Prices shown on physical menus, digital listings, and online marketplaces must be all-in—reflecting every charge a consumer is required to pay, except state/local taxes and shipping.
- Hiding required fees in footnotes, tooltips, or after a click violates the law, exposing businesses to UCL/CLRA suits and enforcement actions.
Which Charges Must Be Included?
SB 478 compliance means every required fee, except government taxes and (in some contexts) shipping, must be included in the marketed price. The AG’s May 2024 FAQ clarifies:
- Required venue or bar surcharges: The menu/listed price of a THC beverage must include any venue-imposed required surcharges.
- Concession or event fees: All non-optional concessions or patron fees must be built into the price.
- Bottle/can recycling charges: The visible price should include California Redemption Value (CRV) fees if these are unavoidable for consumers.
- Delivery or service fees: If mandatory for fulfillment, the price must include these—and they cannot be tacked on only at checkout.
Only taxes and optional shipping (for physical goods shipped to consumers) may lawfully appear as separate line items.
SB 478 in Practice: Cannabis, Hemp, and THC Beverage Scenarios
All-in pricing applies to:
- Shelf tags, paper menus, digital menu boards, websites
- Each beverage/product line item must reflect the full, bottom-line price (minus taxes).
Example: If a cannabis beverage is $9 with a $1 CRV fee and a $0.50 venue surcharge, it must be advertised as $10.50 (plus tax).
Bars, Lounges, and Event Venues
Many venues layered in surcharges or “convenience” fees—these must be folded into the main drink price. Bar operators must sync their POS, printed menus, and online listings with this rule. No hidden fees in footnotes or added at POS!
Online Sales, Delivery, and Marketplaces
- Product display pages (PDPs) and category listings must list the full all-in price per item.
- If the platform or retailer requires a service or fulfillment fee, it must be reflected in the item’s displayed price unless the customer can easily avoid it (e.g., tip is optional).
Compliance Coordination: Tips for Operators in 2025–2026
For Dispensaries and Retailers
- Update all menus and product listings to include CRV, recycling, and any required surcharges in the main price.
- Rigorously audit online checkout flows: the sum total at the confirmation screen must match the price advertised—no surprise jumps.
- Coordinate with third-party marketplaces/delivery platforms to ensure their product pages and receipts follow California SB 478 all-in pricing.
For Bars, Lounges, and Concessions
- Print and digital menus must roll up all required fees into the listed price. Separate line items, unless truly optional (like tipping), don’t pass muster.
- If any new surcharges are added (e.g., COVID or regulatory recovery fee), immediately update all pricing wherever it’s displayed.
- Train staff to explain "what you see is what you pay (plus tax)."
For Online-Only and Multi-State Sellers
- For sales shipped to California addresses, display the SB 478-compliant price to all CA consumers—toggle state-aware pricing or note CA-specific rules on product detail pages.
Handling Disclosures: Prop 65, Redemption Value, and Age Verification
Prop 65:
- Prop 65 cancer/reproductive harm warnings must be clearly visible before purchase—placing them only at checkout does not exempt you from Prop 65 or SB 478 violations. See Juris Law Group, May 2025.
- Warnings should not be bundled into footnotes but be conspicuous wherever the product is sold or priced.
California Redemption Value (CRV):
- CRV is mandatory for most beverage containers—the per-unit price on menu or PDP should reflect the full price including CRV.
Age Verification Fees:
- If any required age-verification fee exists (for delivery platforms, e.g.), it must be built into the shown price unless the fee is optional or the consumer can reasonably avoid it.
Checkout Disclosures:
- Do not hide required fees until the last step or use pre-checked boxes for non-optional services—such approaches risk Unfair Competition Law (UCL) or Consumer Legal Remedies Act (CLRA) exposure. Buyers must see the true, all-in price from the outset.
Key Enforcement Risks and Litigation Trends
- "Drip pricing" lawsuits: Plaintiffs’ lawyers and the California AG are watching for advertised prices that appear lower than the true total at checkout, especially where required fees pop up in fine print or late disclosures.
- Venue, bar, and concert/festivals: Expect targeted enforcement and class actions if a cannabis or hemp THC beverage's price on the menu isn’t what the customer is ultimately charged (minus taxes and legitimate shipping).
- Online platforms: Delivery, ecommerce, and aggregator platforms must update interfaces and pricing logic for California addresses or risk immediate cease-and-desist letters and penalty exposure.
Summary Checklist: How to Stay Compliant in 2025–2026
- Advertise total price (minus taxes/shipping only) everywhere the product appears
- Fold all required surcharges, convenience, or container fees into that displayed price
- Show Prop 65 warnings clearly and early, not buried or postponed to checkout
- Train staff and audit checkout flows to ensure "what you see is what you pay"
- Monitor for regulatory and plaintiff enforcement trends—update processes rapidly if industry consensus shifts
What’s Not Covered by SB 478?
- Government taxes (state excise, local sales): May be listed separately.
- Truly optional add-ons and tips: These can continue to be listed aside from the main price.
- Reasonable shipping for physical delivery: Still allowed to be a separate fee if not mandatory for access.
Takeaway:For cannabis, hemp, and THC beverage businesses in California, 2025–2026 is the era of all-in pricing compliance. With AG scrutiny and private litigation risk on the rise, clarity and transparency in pricing is mandatory for retail, on-premise, and online operators. Ensure your menus, product pages, and promotional content all speak the clear pricing language the law—and consumers—now demand.
Stay ahead of regulatory change and compliance risk: explore CannabisRegulations.ai for in-depth guides and on-demand expert support.
