Service charges; resort fees; "surcharge" add-ons: If you've been startled by unexpected fees when you pay your check at a restaurant — or book a hotel room or buy a ticket to a game, you're far from alone. But if you live in California, change is coming. A new state law requiring price transparency is set to take effect in July.
"The law is simple: the price you see is the price you pay," Attorney General Rob Bonta said on Wednesday, as his office issued long-awaited guidance about a law that applies to thousands of businesses in a wide range of sectors.
Restaurant owners like Laurie Thomas, who heads the Golden Gate Restaurant Association, say the changes will bring higher prices and sticker shock, which could then raise a psychological hurdle in customers' dining habits. That, in turn, will hurt restaurants and their workers, she warns.
"If it's in the core price of the menu, there will be a pullback" in patrons' spending, she told NPR shortly before the attorney general released the guidelines. "There are some people, I think, that are hoping that the restaurants will just absorb that cost, because we've seen people say, 'Oh, it's too expensive with the service charge.' "
Restaurant Association head thinks it's perfectly OK to mislead customers into thinking that prices are lower than they actually are, and gouge them after they've consumed/used the product. Because having knowledge of true prices would cause some customers to make informed decisions that might hurt sales. What other product information could be withheld to boost sales? What product misinformation could be provided to get those customers to "yes"?
You mean that this is a problem of the current system and why the US should switch to displaying price with tax included, right?
Because if there are different taxes for every town, how should the average customer know what he is going to pay?
Agreed; it is a problem with the current system.
How do you know what you’re going to pay at the register? You don’t. It’s a surprise (albeit a crappy one). Certain things don’t have tax (in certain states) so those items it’s easy to figure out.