Junk Fees: California Senate unanimously passes SB 1524. Restaurant exception to SB 478’s Honest Pricing Law goes to Governor.

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.
• Disclosing Mandatory Resort Fees – What Hoteliers Need to Know
• Why Judicial Reference is better than Arbitration for resolving Hotel Management Agreements & Hotel Franchise Agreements. Advanced Analysis of Judicial Reference features.
• The better way to resolve hotel contract disputes: Judicial Reference or Arbitration?
  What’s best for hospitality contract dispute clauses? Arbitration, court litigation, or judicial reference in hotel management and franchise agreements?
• Should New York law govern your hospitality contract? How about Texas, California or Florida law?
• Meet Mark S. Adams, Hotel Dispute Lawyer – Hospitality Litigation, Arbitration & Dispute Resolution
• How Pennsylvania Resort Fees Settlements Could Play Out for US Hotel Industry
• Force Majeure – Contract provisions and governing law are important
• History & origins of Force Majeure as a contract defense
• JMBM’s Global Hospitality Group® announces 5th edition of The HMA & Franchise Agreement Handbook
• Hotel Lawyer on HMAs: “The shrinking terms of hotel management agreements”
• Losing the expectation of privacy bit by bit, byte by byte

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.