SAN DIEGO — Those 'surprise' charges California customers see on restaurant bills were expected to be banned July 1 along with other so-called junk fees charged by businesses.
Days before it was set to take effect, California Governor Gavin Newsom signed emergency legislation that allows the surcharges to stay if "clearly and conspicuously displayed with an explanation of its purpose" on a menu or display.
This will go into effect in July 2025, one year after the fees were set to be banned.
"Whether you're buying concert tickets or just going out for dinner or going out for drinks, you want to look at a menu and know what does that fee include? It's a transparency issue more than anything else," Legal analyst Wendy Patrick said.
The additional fees are unpopular among customers, with some restaurants charging three to six percent. Although, many said it would be fine if they knew why they were being charged.
"I think if they put it upfront and said what they were going to charge then absolutely," Catelynn said.
"I wasn’t really sure what it was for it just said 'surcharge', so I don't understand if it was for something or for the staff," Allison said.
In many cases, the money from the surcharge goes to the restaurant staff. The new policy will allow restaurants to continue charging the fees but give customers notice and clarity.
"The legislature has been looking at ways to make it not only more obvious as to what you're paying for, but also in cases the question has arisen, 'Should there be a separate section on the menu that talks about any included fees so a customer knows what they're buying?'," Patrick said.
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