Proposal would force California restaurants to disclose ‘junk fees’ upfront by

A California state law will require restaurants to disclose previously hidden “junk fees” rather than leaving customers surprised with extra charges on the check, beginning next month.

Starting July 1, the law will require businesses throughout the state to eliminate “hidden fees,” like service charges and fees for event tickets, hotels and food delivery. Those prices will now be factored in the all-in advertised price.

“Oftentimes you see these hidden fees in which a seller uses a low price to attract a customer, and then discloses additional fees in smaller print, or reveals additional charges later in the buying process,” KTLA’s Erin Myers said.

However, an exception may be put in place for restaurants. The bill’s author, Sen. Bill Dodd (D-Napa), has proposed that restaurants still be allowed to have such fees without factoring them into the advertised prices for menu items, but those fees would still need to be displayed in a clear manner.

Fees on a concert ticket receipt are shown in this photo taken Wednesday, Nov. 1, 2023, in New York. “Junk fees” are just what they sound like: hidden or misleading charges that increase the total cost of concert tickets, hotel rooms, utility bills and other goods and services. (AP Photo/John Minchillo)

Those extra charges from restaurants often come in the form of added gratuity or health care funds and benefits for employees.

The new law will likely be welcomed by Californians sick of paying more than the sticker price for goods and services.

“Go to the car dealership and it’s not upfront, they have all these hidden fees,” said Corey Rice of Sherman Oaks. “The concert tickets is the same thing, they just add all these fees without telling people, and that’s wrong … All fees should be upfront.”

The law won’t force businesses to change prices on any services, but rather make sure customers know the exact price before paying their bill.