Consumers Legal Remedies Act: advertisements: restaurant, bar, and other food services.
The bill's implementation will notably affect how food services advertise their prices, particularly in an industry prone to hidden fees and unclear pricing strategies. By requiring clear disclosure of mandatory fees, the law aims to enhance transparency for consumers, empowering them to make informed decisions when dining out or ordering food. Furthermore, from July 1, 2025, the bill will also introduce specific text requirements for disclosures to ensure they are adequately clear. This change is expected to shift the operational patterns of restaurants and food service establishments, compelling them to adopt more straightforward pricing structures.
Senate Bill 1524, authored by Senator Dodd, aims to amend Section 1770 of the Civil Code, which is part of the Consumers Legal Remedies Act (CLRA). This bill specifically addresses regulations surrounding advertisements in the restaurant, bar, and food service sectors. The legislation seeks to reinforce consumer rights by making unlawful the practice of advertising goods or services without including all mandatory fees. Beginning on July 1, 2024, it will be illegal to display prices without accounting for applicable mandatory fees and charges, unless these fees are clearly and conspicuously disclosed. This move is intended to provide consumers with clearer pricing and prevent deceptive advertising practices.
Support for SB 1524 has come mainly from consumer advocacy groups and some legislative members who view this as a significant step towards protecting consumers from deceptive business practices. However, there are concerns from business owners who fear that the bill could lead to increased operational costs and complicate the pricing of services, particularly in a competitive market. Despite these concerns, the general sentiment leans towards viewing the bill positively in terms of enhancing consumer rights and promoting transparency.
A notable point of contention surrounding SB 1524 includes the concern that the legislation could impose additional burdens on food service businesses. Some stakeholders are worried that the requirements to disclose mandatory fees might lead to increased complexity in pricing systems and limit flexibility. Additionally, there is a discussion on the potential impact this could have on third-party food delivery platforms, which have differing operational models compared to traditional food service establishments. The legislation reflects a broader debate regarding the balance between consumer protections and regulatory burdens on businesses.