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No Surprises: Bill C‑59 Makes Hidden Fees a No‑Go for Tourism

ByAngela Nagy

Bill C‑59, which received Royal Assent on June 20, 2024, makes drip pricing – advertising a low base price and adding mandatory fees late in the booking – explicitly prohibited under the Competition Act.

This will affect tourism businesses that include conservation, resort or other additional fees in their pricing, such as those involved in sustainability initiatives like the GreenStep EcoFund program. Importantly, charging these types of fees is acceptable – what matters is ensuring that guests are informed upfront. This is about more than legal compliance; it’s an opportunity to reinforce trust and integrity with guests.

Bill C‑59 & Drip Pricing: What It Means for Tourism Businesses

“Drip pricing” includes any fees that are not imposed directly on consumers by federal or provincial governments, like sales taxes. Bill C‑59 requires that other fees be visible upfront.

Since drip pricing can erode consumer trust and complicate comparison shopping, by shifting towards full transparency, tourism operators can build credibility, improve conversion rates, and position themselves as fair, progressive, and ethical. In this way, transparency serves as both a legal safeguard and a competitive advantage.

Sustainability Fees & Cultural Contributions: How to Include Them Properly

Programs like the GreenStep EcoFund, and cultural or wildlife conservation levies are admirable and meaningful—but they must be clearly itemized and visible from the first moment a guest views pricing. Communicate each fee as a separate line item with a clear, purpose-driven label (e.g., “EcoFund Contribution – Supports our environmental initiatives”) to comply with the law while also strengthening storytelling.

It’s been our experience, across over 100 properties that’ve adopted EcoFund, that guest feedback is overwhelmingly positive when programs are clearly communicated. 

Real‑World Guidance: What You Should Do

To ensure your pricing display aligns with best practices, we recommend:

  1. Include all mandatory fees in the first room rate guests see (e.g., resort fees, service charges, ecofees).
  2. Display only government taxes separately, if needed.
  3. Avoid adding mandatory fees during checkout if they were not visible from the start. 
  4. Ensure consistency across your website, third-party booking sites, and printed/emailed communications.

To help ensure transparency and compliance, you might also want to use statements such as:
“This rate includes all mandatory fees, such as stay, service, and maintenance fees. Government taxes are listed separately,” or “This rate includes a $xx per night EcoFund contribution to support our environmental initiatives. Applicable taxes are listed separately.”

Practical Tips for Compliant Pricing

  • Audit all pricing channels: Ensure consistency across websites, phone bookings, third-party platforms, and marketing collateral.
  • Lead with the total price: All mandatory fees included, before taxes, should be visible immediately.
  • Train your team: Staff should consistently communicate full pricing details, without hidden add-ons.
  • Use supportive technology: Ensure your booking software supports itemized fee displays.

Turning Compliance into a Marketing Advantage

More than ever, consumers are seeking transparency from the brands they support. According to the Salsify 2025 Consumer Research Report, 45% of consumers cite “lack of brand trust” as a top reason for abandoning an online purchase. 

Let transparency work for you by telling the story behind each fee and celebrating support for climate action, conservation, or culture. Transparent, values-driven pricing doesn’t just protect your brand. It’s also memorable, trusted, and more likely to convert.

A Win‑Win for Tourism & Travellers

Bill C‑59 protects consumers, and gives tourism businesses a chance to lead with clarity and ethics. By being fully transparent about mandatory fees, operators do right by guests, elevate their brand, and help build a more sustainable future in travel.

For more information, visit the Competition Bureau website. 

Taking Sustainability to the Next Level

To learn more about GreenStep’s EcoFund and receive a complimentary opportunity analysis, visit GreenStep.ca/what-we-do/ecofund.

FAQs

Drip pricing is when fees like resort or program contributions are added late in the booking process, making the advertised price unattainable. Bill C‑59 requires that all mandatory fees—except government-imposed ones—be shown upfront.

They become hidden fees if not displayed upfront. To comply, they must be included in or clearly shown alongside the total price.

Be transparent and positive: frame fees around the value they provide—for instance, “Your EcoFund contribution helps tackle climate change.” Clear labels and early visibility help maintain conversion.

Yes, all businesses in the tourism sector, large or small, must comply. Starting June 20, 2025, private parties can challenge violations, raising the stakes for non-compliance.