Effective July 1, 2025, California has enacted Assembly Bill 2202, a component of its sweeping anti–“junk fee” legislation, requiring Airbnb and other short‑term rental platforms to disclose all mandatory fees—including cleaning, pet, service fees, and penalties—upfront, clearly and prominently in listings.
What the Law Requires
- Transparent pricing: Hosts must list the total cost—including cleaning and other mandatory fees—at the time of booking. Hidden or surprise fees are no longer allowed.
- Penalty disclosure: Any charges tied to guest misconduct—like broken rules or late check-outs—must also be disclosed upfront.
- Enforcement: Violating the law can lead to civil penalties up to $10,000 per violation.
Why This Matters
- Clarity for consumers: Guests now get a true “all‑in” price before confirming a stay, preventing unexpected surprises at checkout.
- Industry impact: Platforms and hosts must audit listings and adjust pricing templates to include all mandatory fees upfront.
- National influence: California’s law sets a benchmark ahead of similar federal efforts, such as the FTC’s proposed rule and the federal No Hidden Fees Act.
Industry Reactions
- Consumer advocates applaud the move, noting travelers often saw final costs 15–20% higher than initial prices.
- Airbnb and peers have begun adjusting platforms in advance to comply. Airbnb’s CFO noted that requiring total-price displays “creates a bit of a headwind” in consumer bookings.
- Hospitality trade groups are monitoring impacts—both on transparency and whether upfront fees reduce booking volume.
What Hosts & Travelers Should Do
| For Hosts/Platforms | For Travelers |
|---|---|
| Review all listings to ensure mandatory fees are included upfront | Look for total price inclusions before booking |
| Update listing templates (cleaning, pet, penalties, etc.) | Use new clarity to compare deals genuinely |
| Monitor guidance from Airbnb and OTAs | Report undisclosed fees to enforcement authorities |
The Bottom Line
California’s implementation of AB 2202 marks a major victory in the battle against hidden pricing in short-term rentals. It ensures that “the price you see is the price you pay,” empowering consumers and setting a new standard in transparent commerce.
Compliance is mandatory by July 1—meaning late-fee surprises at checkout are officially a thing of the past.
