California junk fee ban could upend restaurant industry

[PaulHoule]

https://sf.eater.com/2024/5/3/24148146/california-junk-fee-ban-restaurants-bars

[bell-cot]

Idea: Restaurants are free to bill patrons in either of these way:

1.) Only published menu prices, plus the exact amounts of any State & Local sales taxes

2.) All they fees & surcharges & whatever that they can dream up

But - for restaurants that go with #2, the state & local tax authorities are allowed to pad the restaurant's tax bills with whatever they can dream up.

[kwertyoowiyop]

“Our business depends on lying about our prices” doesn’t get any sympathy from me.

[MissTake]

If somewhere charged a mandatory 20% “service fee” in lieu of tips, then why don’t they just up the prices 20%?

I mean, sure the prices will go up - but not how much the customer pays. 20% mandatory on $100 is $120. Increasing prices by 20% is still $120.

What am I missing?