Californians will now have a clearer understanding of what they’re paying for when dining out, thanks to Governor Gavin Newsom signing SB 1524 into law. This legislation requires restaurants to disclose any surcharges to their customers, thereby eliminating hidden costs that often shock diners when the bill comes.
SB 1524, which takes effect on Monday, is an extension of last year’s SB 478. The previous bill banned businesses from sneaking in undisclosed fees at the end of transactions, a practice rampant across various industries, from online event tickets to lodging. However, its application to restaurant charges was unclear, necessitating this new law.
Senator Bill Dodd co-authored SB 1524 with Senator Nancy Skinner and stressed the importance of transparency in restaurant pricing. Dodd stated that if a restaurant decides to add a 20% service fee to the bill, it must be explicitly stated on the menu and not be an unpleasant surprise on the final bill.
San Francisco’s Senator Scott Wiener backed the bill, underscoring the need for transparency but also acknowledging the financial struggles of restaurants. “Restaurants should be allowed to cover costs as long as they do so openly,” Wiener said. “This bill strikes an ideal balance between supporting restaurants and ensuring transparency for consumers.”
The new law mandates that any obligatory fees and charges be clearly displayed on advertisements, menus, or any other form of display, along with an explanation of their purpose. This guarantees that customers are fully aware before they make a purchase, helping them avoid unexpected charges after their meal.
This initiative is part of a larger effort to shield consumers from hidden costs that can significantly inflate their bills. Senator Dodd pointed out that undisclosed charges in various transactions contribute to billions of dollars in expenses for California consumers each year. By demanding transparency in restaurant pricing, the new law seeks to provide a more equitable dining experience for all Californians.
As the law comes into effect, diners can look forward to seeing clear disclosures of any surcharges on menus, enabling them to better comprehend their final bill. This shift not only fosters honesty and transparency in the restaurant industry, but also empowers consumers to make more informed decisions about where and how they choose to dine.
Source: Red Right Newsfeed
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