For the last several years, restaurant and bar patrons have been seeing an increase in various miscellaneous charges tacked onto the end of their bills. These surcharges often read “to cover labor costs,” “to offset employee health care” or something to that effect. But the fact of the matter is that we didn’t really know where those “fees” were going.
To the employees? To the owners? It was confusing to say the least. It was also difficult to compare pricing when one bar or restaurant tacked on a 4% fee and another one didn’t. Was it mandatory? Did the patron have to pay them? These hidden fees that popped up across numerous industries inspired California Sen.
Bill Dodd, who represents District 3, which encompasses parts of Sonoma, Napa, Contra Costa and Yolo counties, to introduce Senate Bill 478, which became law on July 1. “I heard from so many of my constituents who were sick and tired of hidden fees being tacked onto the end of the transaction,” Dodd says. “I also experienced it myself in everything from hotels to tickets for events.
” According to the State of California Department of Justice website, SB 478, referred to as the “Honest Pricing Law” or “Hidden Fees Statute,” makes it illegal for businesses to advertise or list a price for a good or service that does not include all the required fees or charges other than certain government taxes and shipping costs. SB 478 is a price transparency bill. The statute does not change what price.