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Governor Newsom Signs Emergency Bill Allowing Service Fees in California Restaurants
©Source: PlumpJack/Reddit
In a last-minute decision that has raised eyebrows, Governor Gavin Newsom signed Senate Bill 1524 on Saturday, permitting California restaurants and bars to continue charging service fees, healthcare costs, and other surcharges, provided they are clearly listed for diners to see. This move, while a relief to many in the service industry, also personally benefits Newsom, who has financial interests in several establishments in the state.
I see this as a possible good thing. Instead of customers seeing their bill and assuming the restaurant is gouging them - they can see WHY their bill is as high as it is and put the blame where it belongs - government regulation and the banks. Tax, surcharge for government mandated health coverage, service fee for credit processing fees, etc.
There are many ways to do that without being deceptive or coercive. Just so you know, what they actually do is give you a menu with item prices on it, and after you're done and ask for the check, some restaurants randomly add a bunch of other fees to it without ever having told you before. You'll never know if they add a $5 healthcare fee or a $10 healthcare fee or a $3.50 fee per person until you read the bill after you already ate and they bring you the bill. They try to guilt you into paying something that you didn't know about or ask for, or they hope you will just pay without looking.
In addition to being outrageous on its face, it's downright deceptive.