A new law that goes into effect on July 1 targets "junk fees" — you know, those fees that get added on for concert tickets, hotel stays, and car rentals and aren’t always "voluntary." Consumers hate these fees because they are, in fact, mandatory. It's been unclear whether restaurants were included in the law, but earlier this month, the California Attorney General's Office released an FAQ stating that restaurant service fees would be covered by the ban.
But while many may applaud the elimination of these fees, the law is upending the restaurant world. Some say it could force some restaurants to raise prices or even close — not exactly consumer-friendly. We've been talking to chefs and restaurant industry experts to understand more about the law, SB 478.
Here's what we know currently, as it's an unfolding topic. If you have additional questions, use the form below to ask them, and we may add those questions and answers to this story. Essentially, the law is trying to achieve more transparency for customers who have had it with service fees for concert tickets, hotel stays and at restaurants.
You typically see this in small print some place on the restaurant menu or bill. The new law will ban all restaurants from using service fees. Critics say the new law won't necessarily save you money.
Restaurants may take out the service fees but add it to the menu in the form of higher food prices. The cost of eating out at certain restaurants will likely go up. And they say it wil.