Hidden Fees and Dispensary Prices: What State and Federal Rules Say

Some dispensaries add extra charges at checkout: a "service fee," a "compliance fee," a "technology fee." They may look small, but they're exactly what "junk fee" laws target. This article explains what the rules say and how to keep your displayed prices complete.

General information, not legal advice. Rules vary by state and are changing quickly. Check with your state attorney general's office or a lawyer.

California: SB 478

California's SB 478 took effect on July 1, 2024. As summarized by compliance publication Cannabis Regulations AI, it requires that any advertised or displayed price include all mandatory fees and charges other than government-imposed taxes (and, for shipped goods, shipping costs).

For a dispensary, that means:

• Shelf tags, printed menus, digital menus, online listings and checkout pages are all covered.
• A mandatory service, compliance, technology, delivery or platform fee can't be added at checkout. It has to be built into the displayed price.
• Excise and sales taxes can still be shown separately.
• Truly optional extras can be listed separately if clearly labeled as optional.

The publication's example is a product advertised at $35 with a $5 service fee added at payment, which it describes as illegal under the law. It also notes inconsistencies in its own dates and recommends checking the California Attorney General's official SB 478 guidance, which is good advice for anyone relying on the details.

The federal FTC rule is narrower than you might think

The Federal Trade Commission finalized a Rule on Unfair or Deceptive Fees that took effect on May 12, 2025. According to an analysis by the law firm Foley & Lardner, the final rule applies only to live-event tickets and short-term lodging. The FTC's earlier proposal would have reached further, but the final rule does not cover general retail, including dispensaries.

That doesn't mean federal law is silent. The FTC's long-standing Guides Against Deceptive Pricing (16 CFR Part 233) still apply to any retailer. They focus on honest price comparisons, for example making sure a "was" price is a real price you offered for a reasonably substantial period.

Other states

Several states have passed or considered their own fee-transparency laws, and their scope varies. If you operate outside California, check:

1. Whether your state has a general price-transparency or "junk fee" law.
2. Whether your cannabis regulator has its own rules on advertising or price display.
3. Whether local rules add anything further.

The simple standard: one price, all-in

Even where it isn't required, building mandatory fees into the shelf price is the most customer-friendly approach:

• The price on the tag is the price, before tax. No surprises at the register except taxes you clearly label.
• Label taxes clearly. "+ tax" or "tax included" on every tag, consistently.
• Match everywhere. The shelf, menu screen and online menu should all show the same all-in price.

Where digital tags help

If you're moving fees into your prices, every displayed price changes at once. That's a big reprinting job with paper, but a quick update with digital shelf tags.

PriceTaglet started with coin and bullion stores, but the core setup works for any store: E-Ink tags, a hub that plugs into an outlet, and a browser dashboard where you set prices and tag designs. We don't yet connect to cannabis POS or tracking systems.

We're looking for our first dispensary pilot partner. If you want help keeping shelf prices complete and consistent, and want a say in what we build for dispensaries, reach out through our early access page.

Sources

• Cannabis Regulations AI, California junk fee law and cannabis
• Foley & Lardner, Is your company prepared for the FTC's junk fees rule?
• eCFR, 16 CFR Part 233, Guides Against Deceptive Pricing
• PriceTaglet, How it works