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Hidden surcharges and service fees will soon be banned in California, including at restaurants. The new state law goes into effect July 1 for all businesses. "The law is about making sure consumers know what they are going to pay," said the California Department of Justice to The San Francisco Chronicle. "And requires that the posted price include the full amount that a consumer must pay for that good or service."The law applies to all fees except taxes. In a statement to KCRA 3 Jot Condie, president of the California Restaurant Association said "This legislation was promoted as a measure that would clarify, but not expand, the scope of current law. Unfortunately, the attorney general appears to have broader ambitions for this law than the legislators that wrote and passed it."Sacramento businesses are concerned about the economic impact it will have. Chad Brown, bar manager at The Shady Lady Saloon, said it will be more difficult for business owners to compensate for that money in an industry that is already struggling. "It's going to be a little bit of a hit, I think because it's less money in the pockets of the servers and staff in general," said Brown. Brown said this could mean higher prices for consumers or staff cuts.Dana Carpenter, who manages Ink Eats & Drinks, said they recently stopped charging a "kitchen equity fee." "The last two months we had quite a few complaints from guests that it was just forced upon them, so we decided as a whole to not do kitchen equity anymore," said Carpenter. KCRA 3 contacted the Attorney General's office and it said more information on the law will be released Wednesday.
Hidden surcharges and service fees will soon be banned in California, including at restaurants. The new state law goes into effect July 1 for all businesses. "The law is about making sure consumers know what they are going to pay," said the California Department of Justice to The San Francisco Chronicle. "And requires that the posted price include the full amount that a consumer must pay for that good or service." The law applies to all fees except taxes. In a statement to KCRA 3 Jot Condie, president of the California Restaurant Association said "This legislation was promoted as a measure that would clarify, but not expand, the scope of current law. Unfortunately, the attorney general appears to have broader ambitions for this law than the legislators that wrote and passed it." Sacramento businesses are concerned about the economic impact it will have. Chad Brown, bar manager at The Shady Lady Saloon, said it will be more difficult for business owners to compensate for that money in an industry that is already struggling. "It's going to be a little bit of a hit, I think because it's less money in the pockets of the servers and staff in general," said Brown. Brown said this could mean higher prices for consumers or staff cuts. Dana Carpenter, who manages Ink Eats & Drinks, said they recently stopped charging a "kitchen equity fee." "The last two months we had quite a few complaints from guests that it was just forced upon them, so we decided as a whole to not do kitchen equity anymore," said Carpenter. KCRA 3 contacted the Attorney General's office and it said more information on the law will be released Wednesday.