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California Assembly approves junk fees law carve-out for restaurants

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California lawmakers are working to exempt restaurants from the new junk fees law that’s set to take effect July 1.

The new law bans businesses from tacking on hidden fees after advertising a certain price. After an outcry from the food service industry, the Assembly approved a carve-out for restaurants that would allow them to keep automatic service charges and other fees as long as they’re clearly disclosed to customers.


“Unique problems came to light and SB1524 will address those problems, upholding the principle of providing consumers with upfront transparency without inadvertently harming food service workers or small businesses,” Assemblyman Matt Haney said.

Now, it’s up to the Senate and Governor Gavin Newsom.

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