The FTC is trying to crack down on “junk fees.” Restaurants are fighting to keep fees and surcharges on their checks.
A proposed rule from the Federal Trade Commission aims to crack down on"junk fees," but restaurants are hoping their fees and surcharges will still be allowed.
U.S. President Joe Biden delivers remarks about retirement security in the State Dining Room at the White House on October 31, 2023 in Washington, DC. The Biden Administration is attempting to crack down on so-called"junk fees" in retirement accounts with a rule prosed by the U.S. Labor Department. "We can dictate where it all goes, so some of our service charge of 20% goes to the back of house," Clavero said.
Kaliwa, a Southeast Asian restaurant in D.C., said it implemented an 8% surcharge to manage rising labor and operating costs. Huh said that the service charge was easier to implement at the company's fine-dining restaurants. But CSHG ended up taking it away from a fast-casual eatery because of customer pushback. Instead, the company just raised menu prices.On the state level, restaurants have already had some success in getting excluded from the fight over junk fees.
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