
“This fall, the Federal Trade Commission is expected to publish a rule banning businesses from "charging hidden and misleading fees."
Last year, 15% of restaurant owners added surcharges or fees to checks because of higher costs, according to the National Restaurant Association. In the second quarter, 3.7% of restaurant transactions processed by Square included a service fee, more than double the beginning of 2022.
While federal law makes it illegal for management to keep their workers' tips, mandatory service charges are the property of the restaurant. Some states, like New York, have their own laws that say service charges belong to staff.
Service fees increase the risk of wage theft, because employers might claim that the money goes to workers but fail to distribute it,
the National Women's Law Center wrote in its public comment.
Moreover, customers who pay a service charge are less likely to tip on top of the check, hurting workers' income, the non-profit organization said.
The National Restaurant Association argues that getting rid of fees will lead to customer confusion, higher prices, less transparency and costly compliance. The trade group estimates that the cost for new menus alone would reach more than $4,800 per restaurant.
For its part, the National Restaurant Association said it's pushing the FTC to protect three fees commonly charged by restaurants: large party, delivery and credit card processing.”
https://www.cnbc.com/2024/08/24/restaurants-fight-ftc-junk-fee-crackdown-over-surcharges.html
Imagine that…$4,800 per restaurant!!………the inhumanity!🤭…
soooo poor national chains owned by the same far right extremists libertarians tech bros monopolies will have to steal their worker’s tips….🤑……I mean…they’ll have too…🤢🐗
“Restaurant Check Includes 3% Surcharge To Provide Owner's Sugar Baby With Birkin." ..The Biden administration has broadly targeted so-called junk fees, like an undisclosed service charge for concert tickets or unexpected resort fees when checking out of a hotel.
byu/BikkaZz ineconomy
by BikkaZz
2 comments
I’m not for hidden fees, couldn’t be more against them. However, you titled this post with a direct quote from the Onion. R/economy has gone to shit.
Resort fees are satanic. They should be included in the price per night for a room. Here in Vegas they are up to $50 a night.