Starting July 1, 2024, all event registration pages on UltraSignup will include all fees and taxes wherever prices are displayed on the platform. This change ensures compliance with the new California “Honest Pricing Law” (SB 478), which mandates increased transparency in pricing and is designed to protect any California consumer. The statute does not change what price a business can charge or what may be included in that cost. The law simply requires that the price listed include all mandatory charges.
To comply with this law, UltraSignup will now include all mandatory fees in pricing displayed throughout the platform for all events. Our approach provides, in our opinion, the strongest possible protection for the race directors on UltraSignup against the risks posed by this new legislation, and provides a consistent pricing experience across our platform.
Key Details to Understand #
- No Change in Fees or Payments: The fees, costs, and payments to race directors remain unchanged. This update only affects how prices are displayed to runners.
- Regulatory Background: California’s “Honest Pricing Law” (SB 478) prohibits advertising prices that do not include all required fees. This new legislation is serving as a foundational model for other legislation that is pending or under consideration around the country both at the state and at the federal level.
- Minnesota has now passed what they are calling the Taylor Swift Bill. Several other major states have similar legislation pending following the California and Minnesota structures.
- Mandatory Compliance: Compliance is mandatory for all retailers, including race directors (and, because we are a marketplace for race directors – UltraSignup as well). Non-compliance can result in severe penalties, including fines starting at $1,000, punitive damages and attorney fees. Consumers, through the use of class action lawsuits, will be able to hold race directors accountable for this legislative change. It is important to note that the fine is $1000 per exposure and the party making the claim does not even have to make a purchase, rather they just have to be exposed to the price. Class action attorneys have up to 3 years to bring a claim for alleged violations of the rule after initial price exposure.
- Liability on Race Directors: It is also important to recognize that race directors are going to be held liable for these penalties if they expose California residents (wherever they may be – i.e. on a business trip to Texas when exposed) to pricing that is non-compliant. The changes we are making to the platform, in our opinion, puts the platform and race directors in a position of compliance.
- Industry-Wide Compliance: All registration and ticket vendors, in addition to other businesses, must comply with this new law. UltraSignup is aligning with this standard to maintain consistency across the industry. This legislation is not limited to California businesses, but rather it is relevant to all businesses that might expose pricing to California residents.
- Positive Impact: Platforms that have implemented changes similar to our changes have seen an increase in conversion rates and a decrease in abandoned carts. This change benefits both customers and businesses.
What Is Changing? #
The California “Honest Pricing Law” mandates transparent pricing. This law prohibits businesses from “[a]dvertising, displaying, or offering a price for a good or service that does not include all mandatory fees or charges,” excluding government-imposed taxes or fees and reasonable shipping costs. This requirement ensures that all displayed prices are comprehensive and clear to consumers. You can find the full text of the law at Section 1770(a)(29) of the California Civil Code.
To comply with this law, UltraSignup will now include all mandatory fees in the initial registration price displayed on event registration pages. Our approach, we believe, provides the strongest possible protection for the race directors on UltraSignup against the risks posed by this new legislation, and provides a consistent pricing experience across our platform.
User Interface Adjustments #
All-In Pricing Plus Descriptive Text: With all-in pricing, the prices displayed upfront will include all service fees, ensuring transparency from the start. Customers will still see a detailed breakdown of registration fees, UltraSignup fees, and sales tax at the shopping cart level. No negative impact is expected, as fees are not changing and have not changed in over a year, and registration volumes have remained high.
FAQs #
Why is UltraSignup making this change?
To comply with California laws and align with evolving customer expectations around price transparency.
My race is not in California, shouldn’t I be exempt?
The regulation applies to anyone who might do business with – or expose pricing to – any California resident or face penalties and possible litigation for non-compliance. Any pricing seen by a California resident – even if that business is located in a different state – must be compliant.
Do other states require this kind of pricing/fee transparency?
A similar law has since been passed in Minnesota (to go into effect January 1, 2025), and others are expected to be adopted across the country. The state legislatures in Colorado, Connecticut, Maryland, New York and Tennessee have all recently considered all-in pricing legislation, and the US House of Representatives is considering the TICKET Act which would mandate pricing transparency nationally. Finally, the FTC has also proposed national regulations requiring pricing transparency, with numerous state attorney’s general having endorsed the new rules.
Can I make changes to how this is displayed on my registration page?
No, this is a system-wide change that will be consistent across all races.
This means that races will look more expensive up front, won’t that cause us added risk of losing registrations?
Data shows that increased fee transparency does not have a negative impact on conversion rate. In fact, a recent analysis of Live Nation’s new All-In Pricing Policy showed that the change actually increased ticket sales.
What are the consequences of non-compliance?
- actual damages, but no less than $1,000;
- an order enjoining the methods, acts or practices;
- restitution of property;
- punitive damages;
- attorney fees; and
- any other relief that a court deems proper.
Can a business comply with this law by disclosing additional required fees before a consumer finalizes a transaction?
No. The price listed to the consumer must be the full price that the consumer is required to pay. [Read more]
Can a business comply with this law by advertising a price that is less than what a consumer will actually have to pay, but disclosing that additional fees will be added?
No. The price advertised to the consumer must be the full price that the consumer is required to pay.[Read more]
Can a business comply with this law by listing or advertising one price and separately stating that an additional percentage fee will apply?
No. The price listed or advertised to the consumer must be the full price that the consumer is required to pay. [Read more]
Benefits of All-in-Pricing #
Data shows that increased price transparency drives higher sales for businesses. LiveNation implemented an “All-in” Pricing model in late 2023, displaying the total cost of the ticket, including fees. In the first six months, this approach resulted in an 8% increase in completed sales.
Extensive research supports the benefits of displaying the full price upfront. For instance, the Baymard Institute’s extensive research, which includes 130,000 hours of UX research and 25 rounds of qualitative usability testing, highlights the negative impact of unexpected fees on e-commerce conversion rates. Their findings emphasize that presenting total costs upfront enhances trust and reduces purchase abandonment.
Additionally, there are psychological benefits to all-in pricing. Simplifying the buying decision by showing a single, all-inclusive price makes the purchase process seem more straightforward and helps customers avoid feeling “nickel-and-dimed.” This simplicity can enhance the perceived value of the purchase and lead to higher conversion rates.
Pros of One All-In Price #
Research shows that displaying the all-in price without breaking out the fees separately gives you the following benefits:
- More Registrations
- Higher conversion rates, which means more registrations with less work.
- Greater likelihood of registration because it’s easier for customers to make purchasing decisions quickly with less hesitation.
- Better perception of your event and brand
- Runners will have a better perception of your brand. The reduced amount of mental work a runner needs to do when registering makes their shopping experience more pleasant and straightforward, which enhances brand perceptions. This better brand perception impacts you since runners see registering as part of their experience with your event.
- Your event is seen as more valuable. Runners will see your event as being worth more because the simplified all-in price enhances the perceived values.
- Higher customer satisfaction
- Customer satisfaction with your event and their registration experience is improved. This leads to things like more word of mouth and more likelihood for a runner to register for your other events.
Take Action to Ensure Your Compliance #
We will notify all race directors once the new display has been deployed and quality assurance tested. At that point, we encourage you to take the following actions:
- Review Your Race Registration Page: Familiarize yourself with the new display and the total All-in Price on UltraSignup.
- Update Prices in Race Descriptions: Ensure any prices listed in the race description text on your UltraSignup registration page reflect the All-in Price.
- Cross-Reference Prices: Compare the prices on your race website with those on your UltraSignup registration page and update your race website as needed.
- Inform Runners: Direct runners with questions to the article on our Help Site or the forthcoming “Fees Explained” landing page on UltraSignup for additional information and context.
Summary #
We will roll out this change by July 1 to do our best to ensure that we keep race directors across the platform compliant. The new pricing display regulations aim to enhance transparency and improve the purchasing experience for runners. Although this change may initially seem challenging, it aligns with consumer protection trends and benefits both race directors and participants. Race directors must comply to avoid immense exposure to financial risks. The update affects only how prices are displayed, not the fees or payments. Compliance is mandatory for all online marketplaces and events, with race directors held liable for transparent pricing even if the platform doesn’t support it. UltraSignup is adhering to these industry-wide standards for consistency.