Dear Members,
We want to inform you about important changes going into effect on July 1, 2024, to address SB 478 & 1524. This new law introduces regulations for service charges and fees in the Food and Beverage Service Industry, impacting our Bistro, Restaurant, Curbside and Catering operations. Here’s what you need to know:
Overview of SB 478 and SB 1524:
SB 478: Authored by California Attorney General Rob Bonta and co-sponsored by the California Low-Income Consumer Coalition, SB 478 aims to enhance price transparency and prohibit deceptive advertising practices by requiring businesses to include all mandatory fees in advertised prices. Governor Gavin Newsom signed SB 478 into law October 2023.
SB 1524: Introduced by State Senator Bill Dodd, SB 1524 provides an exemption for restaurants from the comprehensive pricing mandate of SB 478. It allows restaurants to add service fees or surcharges as long as these are clearly disclosed on menus or advertisements. Governor Newsom signed SB 1524 into law on July, 2024
Key Changes:
• Comprehensive Pricing (SB 478): All advertised prices must include mandatory fees and charges, such as automatic gratuities or surcharges. This ensures that the prices you see are the total amounts payable upfront.
• Transparency (SB 478): While itemized breakdowns of charges will still be provided, the total cost will be clearly reflected on menus, promotional materials, and online platforms.
• Mandatory Disclosure (SB 1524): This bill allows restaurants to add service fees or surcharges as long as these are clearly displayed on menus or advertisements. This amendment aims to provide flexibility while ensuring transparency.
Employee-Related: Voluntary tips and gratuities remain unaffected by these laws and are governed by separate regulations. The Villages Compliance Strategies.
• We are updating all menus to reflect total prices, including any mandatory fees, ensuring you know the complete cost upfront.
• Our Villages Team are being trained on the new pricing requirements to ensure clear and consistent communication with you.
• We will update our marketing materials to highlight our compliance with SB 478 and keep you informed of these changes through various channels.
Adhering to SB 478 & SB1524 not only ensures our legal compliance but enhances transparent and competitive pricing.
After SB 478 & SB 1524:
Menu Disclaimer will be posted on all menus:
All prices listed include mandatory service charges and fees. Additional gratuity is at the customer’s discretion.
