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California Implements 'Junk Fee' Ban, Mandating All-Inclusive Menu Pricing

Starting July 1, California restaurants must incorporate mandatory service charges into menu prices, eliminating surprise fees for consumers.

Restaurant Junk Fees Ban Surcharges California Business
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Overview

  • The new law, effective July 1, prohibits additional service fees and surcharges from being added at the end of a meal or service.
  • Restaurants predict significant price hikes and potential reductions in customer visits and employee hours due to the new pricing structure.
  • Consumer advocates applaud the move for enhancing pricing transparency and fairness in the marketplace.
  • The legislation aligns with a broader initiative led by President Biden to eliminate deceptive pricing practices nationwide.
  • Legal challenges and enforcement strategies are anticipated as businesses adjust to the new pricing regulations.