SB 1524
SB1524 Content
Clarifies Language for Restaurant Pricing and Transparency
SB 1524 builds upon SB 478 from 2023, which was aimed at preventing “drip pricing”
On June 29th, 2024, Governor Newsom signed CRA-cosponsored bill, SB 1524 (Dodd + Wiener), into law. SB 1524 requires mandatory fees and charges to be clearly and conspicuously displayed, with an explanation of their purpose, on any advertisement, menu, or other display that contains the price of the food or beverage item. SB 1524 will preserve your choice to offer pricing models that are best for your restaurant, team-members, and guests so long as those charges are disclosed to guests ahead of purchase.
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Top highlights from the bill.
Requires mandatory fees and charges to be clearly and conspicuously displayed, with an explanation of their purpose, on any advertisement, menu, or other display that contains the price of the food or beverage item
Builds upon SB 478 from 2023 which was aimed at preventing “drip pricing”, where consumers see an advertised price, but are subject to additional, undisclosed charges at purchase
Provides transparency in pricing and allows guests to be presented with the price of various menu items and the amount of surcharge at the same point in time, when they are deciding what to order, and before they are charged for the meal
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Why was SB 1524 Introduced?
Responding to SB 478 Guidance and FAQ
In response to questions about how the new law SB 478 would apply to restaurant charges, Sen. Bill Dodd introduced SB 1524 as an urgency measure. The bill, which went into immediate effect, clarifies that any mandatory gratuity, service charge or other fee charged by restaurants must be displayed conspicuously on restaurant menus. SB 1524 acknowledges the increasing trend among restaurants to establish and disclose “service charge” models to help finance non-mandatory benefits to team members and staff.
SB 1524 Library
Webinars ● Industry Insights ● And More
Industry Insight by CRA Legal partner Wilson Elser
Understanding and guidance on surcharges and service fees
CRA Legal Center Webinar with Berliner Cohen
SB 1524 Victory! Understanding SB 478 History and how to Comply with SB 1524
News You Need to Know
Two Victories: PAGA Reform & Pricing Flexibility/Transparency Bill
News Release
CRA, UNITE HERE, & Lt. Governor Cosponsored Bill (SB 1524) Ensuring Flexible and Transparent Restaurant Pricing Signed Into Law
News Release
Sen. Dodd Introduces Restaurant Fees Bill
News Release
Sen. Dodd Introduces Restaurant Fees Bill
News Release
The California Restaurant Association Responds to SB 478 Guidance and FAQ Released by California Attorney General’s Office
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