Restaurants exempt from new California law banning hidden fees

Junk fees banned in California under new law 02:07

SACRAMENTO — A new California law in effect is designed to protect consumers against excessive or undisclosed costs on purchases. However, Gov. Gavin Newsom signed a last-minute exemption for the restaurant industry.

Some have called it a junk fee law. Legislators passed it to prevent businesses, like restaurants, from advertising a price for an item and then tacking on hidden fees when it’s time for a customer to pay. This does not include taxes or shipping costs.

“I bought tickets for a standup comedy show downtown,” civilian Ruslan Mazurchak said. “The ticket was $20 It was on StubHub for $20 and there was $30 in extra fees. It was ridiculous.”

It’s a practice common in ticket sales and other industries like hotels.

Dean Huitrado, owner of Railroad Fish and Chips in Old Sacramento, admits he has a 50-cent charge on his to-go bills.

“It’s the costs we’ve seen across the board from napkins, oil, ketchup, togo containers—a good example where, in some cases, the price has doubled,” he said.

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