California Law Mandates Transparency for Restaurant Surcharges

New legislation allows surcharges but requires clear disclosure on menus and advertisements.

Governor Gavin Newsom signed SB 1524, permitting restaurants to add surcharges if clearly stated.
The law modifies SB 478, which banned undisclosed fees across various industries.
Restaurants must now display surcharges conspicuously with explanations of their purpose.
The change aims to balance consumer transparency with financial relief for the restaurant industry.
The law took effect on July 1, 2024, immediately impacting California's dining establishments.