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California says restaurants must bake all of their add-on fees into menu prices
Service charges; resort fees; "surcharge" add-ons: A new state law requiring price transparency is set to take effect in July. Until now, no one knew how it would apply to restaurants.
Consumer advocacy groups have celebrated the law, SB 478, calling it a simple matter of common sense that will bring much-needed clarity and transparency to retail transactions. A dozen states, including Colorado and Pennsylvania, have taken up legislation similar to California's this year, although as of now, none of those bill have gotten final approval, according to the American Economic Liberties Project, a progressive nonprofit that campaigns against junk fees. Car dealers are the subject of their own pending rule from the FTC, which says the change could save U.S. consumers more than $3.4 billion — and an estimated 72 million hours worth of time spent shopping for vehicles.
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