New California law will ban restaurant surcharges on customer bills, other fees [Video]

Restaurant surcharges will soon be illegal in California as a new law, aimed at banning hidden fees, takes effect in July, according to the office of State Attorney General Rob Bonta.

Starting July 1, under SB478, California restaurants will no longer be able to charge service fees and must instead fold them into menu prices.  

“SB 478 applies to restaurants, just like it applies to businesses across California,” a Department of Justice spokesperson told the San Francisco Chronicle. “The law is about making sure consumers know what they are going to pay and requires that the posted price include the full amount that a consumer must pay for that good or service.”

KTLA reached out to the state attorney general office but didn’t hear back in time for publication.

The new law, authored by Sen. Nancy Skinner, D-Berkeley, and Sen. Bill Dodd, D-Napa, prohibits businesses from charging “junk fees” or burying added costs to artificially lower prices, a practice commonly …