2023 FTC proposed rule aims to ban "junk fees" in restaurants, but restaurants argue they help keep menu prices low and improve employee compensation.
The FTC proposed a rule to ban "junk fees", such as surcharges and hidden fees on restaurant bills, in 2023. Restaurants argue that these fees help keep menu prices low, improve employee compensation, and are more transparent for customers. 15% of restaurant owners added surcharges or fees to checks due to higher costs in 2022, as per the National Restaurant Association. While the FTC aims to address hidden fees, restaurants claim that not all fees are junk fees and customers understand what they're paying for in most cases. Some restaurants argue that surcharges and fees help them provide better benefits for their employees and avoid increased menu prices.
August 24, 2024
10 Articles