Junk Fees: California Senate unanimously passes SB 1524. Restaurant exception to SB 478’s Honest Pricing Law goes to Governor.
by Mark S. Adams Hotel Dispute Lawyer, Partner & Senior Member JMBM’s Global Hospitality Group
On June 27, 2024, the California Senate unanimously approved SB 1524’s so-called “restaurant exception” from SB 478’s Honest Pricing Law. See, Junk Fee Law: Exception for California restaurants moves forward.
The Senate bill passed today was identical to the Assembly version passed on June 25, 2024. It was enrolled and presented to the Governor at 3:00 pm on June 27, 2024
If signed, as expected, the carve-out of restaurant surcharges from SB 478’s ban on California junk fees will become law immediately. The fast-track processing of the restaurant exemption will save the industry from the July 1, 2024, effective date for SB 478’s ban on drip pricing for most other businesses.
This exception enables restaurants, bars, and other food service businesses to continue adding mandatory fees to restaurant bills, without including them in the price of the food or beverage shown on a menu, advertisement or other display, as long as the mandatory charge is clearly and conspicuously displayed somewhere.
See Final Text of SB 1524 as passed by Senate and presented to the Governor 6-27-24.
For more recent articles about Junk Fees written by Mark S. Adams, please see the following links:
- Junk Fee Law: Exception for California restaurants moves forward
- California’s AB 537 mandates transparent pricing for all short-term lodging as of July 1, 2024 — $10,000 penalty for violation
- New Federal Junk Fee Law – The No Hidden FEES Act of 2023 (HR 6543)
- Jim Butler asks Mark S. Adams for update on California Junk Fee law: Would SB 1524 gut SB 478’s honest pricing for all?
- Pricing transparency without hidden mandatory junk fees. Does this apply to restaurants too? New California proposed law (SB 1524 ) says “No!” Can this be right?
- FTC’s proposed rule will end drip pricing and junk fees for hotels, restaurants, and many other businesses. Goodbye to resort fees, destination fees, service charges and other miscellaneous fees?
- California bans Junk Fees as of July 1, 2024. Good bye to junk fees, resort fees, mandatory service charges, and drip pricing. Hello to – the fruits of SB 478.
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See how JMBM’s Global Hospitality Group® can help you.
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Note: If you are a consumer with a Junk Fee issue, please do NOT contact us! We do not represent consumers. We represent owners, developers, lenders, and management of hotels, restaurants, and other hospitality-related properties. We advise them on litigation, labor, regulatory compliance, contracts, transactions, financing, development, and strategies.
About the JMBM Global Hospitality Group®
The hospitality attorneys in the Global Hospitality Group® of Jeffer Mangels Butler & Mitchell LLP comprise the premier hospitality practice in a full-service law firm, and the most experienced legal and advisory team in the industry. Our team of seasoned hotel lawyers has helped clients with more than 4,600 hospitality properties located around the globe valued at more than $123 billion, and have worked on more than 2,700 management and franchise agreements. Our experience provides one of the most extensive virtual data bases of market terms for deals and financings. The hospitality lawyers of our team are not just great hotel lawyers—we are also hospitality consultants and business advisors, dealmakers and facilitators of the flow of capital. We help our clients find the right operator, joint venture partner or capital provider. We know who to call and how to reach them.
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