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California Restaurants Must Identify Service Fees as Part of Listed Prices

May 13, 2024

Via: JD Supra

California’s Department of Justice recently confirmed that California’s new law requiring businesses to disclose “junk fees” as part of the advertised price extends to California restaurants, delivering another challenge to a hospitality industry already struggling to support higher wages and inflated costs. Starting July 1, 2024, under Senate Bill 478, California restaurants will be prohibited from charging service fees or other surcharges, which many restaurants have implemented to offset rising costs, unless the amount of the service fee is specifically identified as part of the listed prices.

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