welcome to ask eater, an Eater SF column in which the site’s editors answer tough food-related questions from readers and friends.Have questions? Email sf@eater.com.
Hello, Eater SF.
I was wondering if you knew about it? new junk fee bill It was signed into law over the weekend. It’s a bit vague when it comes to restaurants, but do you know if forced service changes and fees involving large parties will be allowed under the new law?
thank you,
Questions about service fees
If you have any questions about service fees,
First, some background for those who aren’t familiar with it. Governor Gavin Newsom signed it on Saturday, October 7th. Senate Bill 478 To the law.colloquially it is called Prohibition of “junk fees” These onerous and sometimes exorbitant fees are most often associated with things like concert tickets and hotel accommodations. And, of course, California isn’t the only state looking to eliminate these fees. On Wednesday, President Biden announced a proposed rule that would similarly ban “.hidden fake” charges will be uniform nationwide.
The California law won’t go into effect until July 1, 2024, and is aimed, among other things, at preventing companies from deceiving the final cost of their products and services.in press releaseCalifornia Attorney General Rob Bonta, the bill’s sponsor, said the law “allows sellers to use artificially low headline prices to attract customers, typically disclosing required additional fees in small print.” or additional unavoidable charges that will be disclosed later.” purchase process. ”
Now back to the original question. Are restaurant service charges counted as “junk charges”?
Simply put, it is possible. A spokesperson for the attorney general’s office confirmed Friday afternoon that all businesses, including restaurants, are subject to the new law. Therefore, the scope of the definition of “junk fees” would include restaurant and bar service charges, although restaurants are not specifically mentioned in the bill and are not necessarily the primary target of the law.
But that doesn’t mean restaurants and bars can’t charge these fees. Additional fees will be used for employee health care or act as a chip (reportedly, at least). “SB 478 is an advertising law, not a pricing law, so businesses are free to set their prices and use that money however they want, as long as consumers know the price from the beginning.” wrote a spokesperson for the attorney general. “Simply put, the price Californians think is the price they pay.”
That means restaurants, like all businesses in the state, simply need to ensure that any additional fees or service charges are clearly disclosed to customers before the final bill is submitted. This means disclosing any mandatory charges on your menu upfront, both in print and online.in Email The Golden Gate Restaurant Association, San Francisco’s restaurant lobby, offers this advice to its members: Customers should never be surprised by additional charges. ”
It’s not yet decided what the new law will look like, but it should be clear that restaurants and bars will continue to charge customers as long as they’re upfront about what they’re paying.
Updated: October 13, 2023, 3:57 p.m. This article has been updated with information from Attorney General Rob Bonta’s office.
