California Restaurants Required to Include All Fees in Menu Prices
Starting July 1, a new law in California will require restaurants to include all add-on fees into menu prices. This means that mandatory charges must be included in one figure, with only optional fees like tips being left out. Violating this mandate can result in consumers seeking damages of at least $1,000.
Consumer advocates are praising the law for bringing transparency and clarity to retail transactions. They believe that this will help prevent businesses from adding additional fees that mislead consumers about total costs. Pervasive hidden fees have been found in a variety of industries, including restaurants, hotels, and car dealerships.
However, restaurant owners have expressed concerns about the increased prices and potential negative impacts on businesses and workers. They worry that this new law could deter customers from dining out and ultimately hurt their bottom line.
Not only California, but the federal government and other states are also considering similar legislation to promote transparent pricing in retail transactions. Advocates recommend asking about the use of service charges and tipping in cash to avoid deductions from tips.
Overall, the goal of this new law is to protect consumers and ensure that they are fully informed about the costs of their purchases. With the implementation of this mandate, consumers can make more informed decisions while dining out.
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