New California junk-fee legislation will impact restaurateurs

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BATTLE OVER YOUR BILL. >> I'M ELIZABETH COOK. >>> IN LESS THAN A MONTH BUSINESSES WILL NO LONGER BE ABLE TO ADD THOSE HIDDEN CHARGES ON PURCHASES KNOWN AS JUNK FEES. >> THE GOAL OF THE LEGISLATION IS MEANT TO MAKE SURE CUSTOMERS ARE NOT EXPOSED TO DECEPTIVE BUSINESS PRACTICES THAT ADD UNFAIR COSTS THAT INCLUDES CREDIT CARD FEES, AIRLINE FEES, EVEN THE SERVICE CHARGES YOU SEE AT DINNER. THAT LEGISLATION IS SET TO BECOME LAW IN LESS THAN A MONTH AND IS NOW SEEING PUSHBACK. >> OUR JOSE MARTINEZ IS IN THE MISSION WITH WHY RESTAURANTS ARE HOPING A NEW BILL WOULD PROTECT THEIR BOTTOM LINE. >> Reporter: MARCO HAS OWNED THIS RESTAURANT IN THE MISSION SINCE 1997. HE'S AMONG THOSE RESTAURANT OWNERS CONCERNED ABOUT A NEW LAW SET TO TAKE EFFECT JULY 1st THAT WOULD PREVENT THEM FROM CHARGING SERVICE FEES. >> IT'S ALL ABOUT BEING CLEAR, CLARITY. WE HAVE BEEN CHARGED SO MUCH CHARGE LEFT AND RIGHT, RESTAURANT OWNERS, BY THE TABLET, BY THE TAX, BY THE CREDIT CARD PROCESSING FEES, SO MUCH FEES COMING AND ALSO TRYING TO DO A BETTER SALARY FOR OUR EMPLOYEES. >> Reporter: SO HE TELLS ME HE'S BEEN PAYING CLOSE ATTENTION TO THE LATEST DEVELOPMENT IN THIS LEGAL BACK AND FORTH. NOW A NEW PIECE OF LEGISLATION INTRODUCED BY STATE SENATOR BILL DODD WILL PROTECT RESTAURANT FEES AS LONG AS THEY'RE PRESENTED CLEARLY TO THE CUSTOMER. >> NOBODY IS IN THE BUSINESS OF TRYING TO CHEAT ANYONE. ANYBODY SHOULD KNOW EXACTLY WHAT THEY PAY FOR AND THAT I'M TOTALLY SUPPORTING IT. I LOVE THAT TO BE VERY CLEAR IF WE COULD DO IT, EVERY CUSTOMER WHICH IS GOOD AND WE WILL FEEL GOOD. >> Reporter: THIS MEANS RESTAURANTS WOULD CONTINUE TO OPERATE AS THEY CURRENTLY DO, BY DISCLOSING ANY EXTRA FEES ON MENUS, WEBSITES, OR RESERVATIONS NOTICES. IT'S ALL PART OF AN EFFORT TO CLARIFY STATE BILL 478 KNOWN AS THE JUNK FEE BAN WHICH BANS UNDISCLOSED FEES FROM RENTAL CAR DEALERS AND TICKET SELLERS FOR CONCERTS AND OTHER EVENTS, BUT THE INCLUSION OF RESTAURANTS HA CONFUSION AND IN A STATEMENT THE CALIFORNIA RESTAURANT ASSOCIATION HAD A STATEMENT SAYING IT WILL INSURE THIS IS IMPLEMENTED IN A MANNER THAT DOES NOT UNNECESSARILY DISRUPT RESTAURANT OPERATIONS THROUGHOUT THE STATE. SENATOR DODD WHO CO-AUTHORED S.B.478 EMPHASIZED THAT THE NEW LEGISLATION IS MEANT TO INSURE TRANSPARENCY AND FAIRNESS IN THE INDUSTRY. FOR EXAMPLE, IF A RESTAURANT ADDS A 20% GRATUITY FOR LARGE GROUPS, THAT 20% MUST BE CLEARLY STATED UP FRONT ON THE MENU. IT CANNOT BE A SURPRISE THAT ONLY SHOWS UP WHEN THE BILL ARRIVES. >> I WOULD, FOR EXAMPLE, TIPS IN THERE, I WILL ADD -- MAYBE IN THE TIPS BRACKET EVENTUALLY I COULD ADD ALSO THE FACT THAT DISTRIBUTION WHEN I DO A DELIVERY, FOR EXAMPLE, BUT ON THIS ONE THERE'S NO DELIVERY, SO I DON'T WANT TO PUT IT HERE. >> Reporter: LAWMAKERS ARE RUSHING TO PASS THE EMERGENCY RESTAURANT LEGISLATION BEFORE JULY 1st. >> WE'RE WORKING SO MUCH AND OUR CUSTOMERS WHO HAVE BEEN SUPPORTING US FOR SO MANY YEARS, THEY TOTALLY UNDERSTAND THAT AND SOME OF THEM ACTUALLY HAVE BEEN OFFERING US TO GIVE MORE TO HELP FOR US TO PAY BECAUSE THEY UNDERSTAND WHY WE'RE DOING THIS JOB. >> Reporter: MARCO TELLS ME HE'S HOPEFUL THIS BILL WILL GET APPROVED TO AVOID HAVING TO RAISE PRICES ON THE MENU. >> THE NEW LAW TAKING EFFECT IN
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Channel: KPIX | CBS NEWS BAY AREA
Views: 7,461
Rating: undefined out of 5
Keywords: Legislation, Junk Fees
Id: L04307YfYd0
Channel Id: undefined
Length: 3min 32sec (212 seconds)
Published: Sat Jun 08 2024
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