Why Does My Price Show Higher at Checkout? (Pricing Display Regulations Explained)

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 UltraSignup, as we are a marketplace for race directors). Non-compliance can result in severe penalties, including fines starting at $1,000, punitive damages, and attorney fees. Consumers can hold race directors accountable through class action lawsuits. Importantly, the fine is $1,000 per exposure, and claims can be made within three years after initial price exposure.
• Liability on Race Directors: Race directors will be held liable for penalties if they expose California residents to non-compliant pricing. Our platform changes aim to put UltraSignup and race directors in a position of compliance.
• Industry-Wide Compliance: All registration and ticket vendors must comply with this law, as it applies to any business potentially exposing pricing to California residents.
• Positive Impact: Platforms that have implemented similar changes have seen increased conversion rates and reduced abandoned carts, benefiting 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 race directors and ensures a consistent pricing experience across our platform.

User Interface Adjustments

All-In Pricing Plus Descriptive Text: The prices displayed upfront will include all service fees, ensuring transparency. A detailed breakdown of registration fees, UltraSignup fees, and sales tax will still be provided at checkout. Fees have not changed, and registration volumes remain high.

FAQs

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 research, which includes UX research and usability testing, highlights the negative impact of unexpected fees on e-commerce conversion rates. Presenting total costs upfront enhances trust and reduces purchase abandonment.

Pros of One All-In Price

• More Registrations
  • Higher conversion rates, resulting in more registrations with less work.
  • Runners are more likely to register quickly when the pricing is clear and straightforward.
• Better perception of your event and brand
  • Simplifying the registration process with clear pricing enhances brand perception and the overall runner experience.
  • Runners view your event as more valuable, with a simplified all-in price enhancing perceived value.
• Higher customer satisfaction
  • Satisfaction with your event and registration experience increases, leading to more word of mouth and more likelihood of repeat registrations.

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:

1. Review Your Race Registration Page: Familiarize yourself with the new display and the total All-in Price on UltraSignup.
2. Update Prices in Race Descriptions: Ensure any prices listed in the race description text on your UltraSignup registration page reflect the All-in Price.
3. Cross-Reference Prices: Compare the prices on your race website with those on your UltraSignup registration page and update your race website as needed.
4. 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 ensure compliance across the platform. These new pricing display regulations enhance transparency and benefit both race directors and participants. UltraSignup's approach helps race directors comply with industry-wide standards, avoiding potential financial risks.

Resources

• SB 478 - California Department of Justice
• Whitehouse.gov
• Section 1770(a)(29) of the California Civil Code