DC attorney general establishes clear guidelines for restaurant fees to avoid confusion.
Attorney General Releases New Guidelines for Restaurant Service Fees in Washington, D.C.
As dining in the nation’s capital becomes more expensive, the attorney general in Washington has taken action to address the concerns of customers. In response to recent price hikes on restaurant checks, Attorney General Brian Schwalb has released new guidelines on how restaurants should disclose their service fees.
Customers have been particularly vocal about the increased costs, especially after the implementation of Initiative 82, which added a 3.5% fee in July to better compensate tipped employees. To ease the public’s concerns, Schwalb has decided to crack down on restaurants that are not transparent about their additional fees.
Ensuring Transparency for Diners
“Diners are frequently confused by vaguely labeled fees that appear on their restaurant bills and should be able to make fully informed decisions about how to spend their hard-earned money before placing their orders,” Schwalb stated. “District law requires restaurants to disclose any fees in a timely, prominent, and accurate manner.”
If businesses fail to comply with the new rules, they may face fines of up to $5,000 for first-time offenders and $10,000 for repeated offenses. In addition to the Initiative 82 fees, the attorney general has also banned the ”deceptive” use of 4% wellness fees and 5% restaurant recovery charges since March.
Schwalb has already taken action by sending letters to approximately 2,460 Washington restaurants, urging them to prominently and accurately disclose their fees. While it is legal to charge service fees, customers must be fully aware of them before paying.
As a result of Schwalb’s warning, restaurants are now required to clearly state the reason for the fee and its amount.
Restaurant owners have expressed gratitude for the attorney general’s direct action. One owner, Diane Gross of Cork Wine Bar and Market, said the warning to dining establishments was ”especially helpful.”
If residents of Washington have complaints or questions about restaurant service fees, they can contact the attorney general’s office by texting “COMPLAINT” to 202-738-5212 or calling 202-442-9828.
Click here to read more from The Washington Examiner.
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