From Reader Kevin. TY!

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Great, now restaurants must fold the extra fees into menu prices to maintain transparency with all charges upfront. While this new law looks good on paper, all it does is make the restaurants charge more for the food.

Read more at: https://www.sacbee.com/news/california/article288188635.html#storylink=cpy

By Angela Rodriguez
May 01, 2024

Under a new California law, California restaurants will no longer be able to charge customers surcharges, or service fees. Starting July 1, Senate Bill 478, or the “Consumer Legal Remedies Act: advertisements,” will ban “junk” fees on purchases made across California. This includes additional hidden fees related to online purchases, such as concert tickets or hotel rooms, food delivery and surcharges at restaurants. The California attorney general’s office confirmed on Tuesday with the San Francisco Chronicle that the law would apply to restaurant surcharges, which are often mistaken as tips or taxes, used to cover additional expenses, including employee health care or credit card processing fees. “Californians will know up front how much they’re being asked to pay, and no longer be surprised by hidden junk fees,” Senator Nancy Skinner said in an October statement from the Office of the Attorney General. Here’s what you need to know before the law takes effect: What are ‘junk’ fees? This law aims to prohibit “junk” fees, or drip pricing, where a price shown to consumers is lower than what they actually end up paying for a product or service at the final stage of purchasing, the bill states.