75 votes

California says restaurants must bake all of their add-on fees into menu prices

29 comments

  1. [18]
    Jedi
    Link
    This is great. I also think stores should include sales tax in the price tag. I get that that varies online, but in-store there’s no reason not to.

    This is great. I also think stores should include sales tax in the price tag. I get that that varies online, but in-store there’s no reason not to.

    55 votes
    1. [16]
      tanglisha
      Link Parent
      I completely agree, but nobody wants to be the first to do it - it makes the price look higher. When the state liquor stores were first closed in Washington, a (formerly) local drug store put the...

      I completely agree, but nobody wants to be the first to do it - it makes the price look higher.

      When the state liquor stores were first closed in Washington, a (formerly) local drug store put the entire cost breakdown into the shelf signage. It was awesome, they separated out all the different charges so you could see which taxes were responsible for what felt like a 50% tax. Someone put a lot of time and effort into making the whole thing easy to understand.

      They stopped doing it before long because nobody was buying any liquor from them. People are only looking at the final price, then comparing that with what the price was marked at in other stores.

      24 votes
      1. [3]
        DavesWorld
        Link Parent
        America is the country that didn't purchase a third-of-a-pound burger because somewhere around half the consumers thought it was smaller than the quarter pounder. I wish I was making that up....

        America is the country that didn't purchase a third-of-a-pound burger because somewhere around half the consumers thought it was smaller than the quarter pounder.

        I wish I was making that up.

        Whenever you hear about something, and think "but surely people can't be, wouldn't be, that stupid" just remind yourself yes. Yes they can. And yes they are. And, definitely, yes they will. You'll never go broke betting on the stupidity of humans.

        27 votes
        1. TheBeardedSingleMalt
          Link Parent
          Just like JCPenney when they switched to "Fair and Square" Pricing. Old pricing model: A pair of jeans being MSRP $39.99, 15% off plus an additional 15% for whatever weekly sale is perpetually...

          Just like JCPenney when they switched to "Fair and Square" Pricing.

          • Old pricing model: A pair of jeans being MSRP $39.99, 15% off plus an additional 15% for whatever weekly sale is perpetually active and this weekend only (aka every other weekend) save an additional 10%!!

          • Fair and Square: $26.

          Sales tanked because nobody thought they were getting a "deal".

          14 votes
        2. Pistos
          Link Parent
          Clearly, their next move should have been to create a Fifth-Pounder. Even better profit, too.

          Clearly, their next move should have been to create a Fifth-Pounder. Even better profit, too.

          2 votes
      2. [11]
        whbboyd
        Link Parent
        Things people should look at: The cost per unit quantity (e.g. "per liter" for liquor) after all fees (taxes, shipping, Ticketmaster bullshit, etc.) have been included Things people actually do...

        Things people should look at:

        • The cost per unit quantity (e.g. "per liter" for liquor) after all fees (taxes, shipping, Ticketmaster bullshit, etc.) have been included

        Things people actually do look at:

        • The big number on the price sticker
        13 votes
        1. [9]
          Nazarie
          Link Parent
          I was buying something at the supermarket yesterday and they had the same item in different sizes right next to each other. They have the unit price next to the total, but on the smaller item the...

          I was buying something at the supermarket yesterday and they had the same item in different sizes right next to each other. They have the unit price next to the total, but on the smaller item the unit was pounds and on the larger one it was ounces. Very annoying and highly misleading.

          14 votes
          1. [8]
            PigeonDubois
            Link Parent
            How many ounces to a pound?

            How many ounces to a pound?

            1. [7]
              Nazarie
              Link Parent
              16? Not sure the objective of the question. Sure, I can do the math and in that case I did. But having them next to each other and switching up units is, as far as I can tell, meant to confuse.

              16?

              Not sure the objective of the question. Sure, I can do the math and in that case I did. But having them next to each other and switching up units is, as far as I can tell, meant to confuse.

              3 votes
              1. [2]
                PigeonDubois
                Link Parent
                There was no objective, I genuinely didn't know. I'm in a country that uses the metric system, so when some products are per kg and some are per 100g it's still obvious without having to do any maths.

                There was no objective, I genuinely didn't know. I'm in a country that uses the metric system, so when some products are per kg and some are per 100g it's still obvious without having to do any maths.

                5 votes
                1. Nazarie
                  Link Parent
                  I would gladly use metric over imperial, but my country likes to be obtuse. Having lived in Europe for several years, I much prefer metric.

                  I would gladly use metric over imperial, but my country likes to be obtuse. Having lived in Europe for several years, I much prefer metric.

                  3 votes
              2. [4]
                DefinitelyNotAFae
                Link Parent
                I call this soda, paper towel, and/or toilet paper math. It's the worst part of grocery shopping. And it's worst with things like soda where they'll have a sale price but only if you by 3 or 4, or...

                I call this soda, paper towel, and/or toilet paper math. It's the worst part of grocery shopping. And it's worst with things like soda where they'll have a sale price but only if you by 3 or 4, or $9.99 for a 24 pack of cans, must by 2, but also five dollars off a $25 purchase of that brand.

                I hate it.

                1. [3]
                  Nazarie
                  Link Parent
                  Toilet paper is horrible to price compare. Telling if two packs contain the same amount and figuring out the unit price for them is practically futile. I've basically given up and settled on...

                  Toilet paper is horrible to price compare. Telling if two packs contain the same amount and figuring out the unit price for them is practically futile. I've basically given up and settled on buying the exact same pack of TP without doing price comparisons.

                  Those crazy deals you mention are really common at places like Dollar General (if you have one). They are also notorious for listing a discount that's not even in the system, so you have to watch them like a hawk and call out any "mistakes". Contrast that with my local Publix who will proactively tell me if I missed picking up items that were part of a BOGO or something similar.

                  1 vote
                  1. DefinitelyNotAFae
                    Link Parent
                    The "deals" on soda seem to be like that at all the grocery stores right now. I assume it's coming from the manufacturers (it's particularly bad on the big three). I've always appreciated that...

                    The "deals" on soda seem to be like that at all the grocery stores right now. I assume it's coming from the manufacturers (it's particularly bad on the big three). I've always appreciated that unlike a Walgreens or Dollar General, you don't have 2 for 5 (must buy 2, 1 at regular price) grocery stores usually have Sale, $2 for $5 ($2.5 each). Soda is one of the major exceptions to that.

                    I also mostly just buy the Costco package of Charmin and move on with my life. My partner hates that I fuss over coupons and sale prices, but if I'm running to the store for the few things I couldn't get at Aldi, or I know "Coke Zero" is on the list or whatever, I might as well check several apps for the current prices and coupons. Sometimes it's pennies but sometimes I'm saving $5-$10 and since he's still drinking the soda, he gets to deal with my low rent couponing.

                  2. ThrowdoBaggins
                    Link Parent
                    I guess it depends on how the unit price requirements are set up — in Melbourne Australia I’ve only ever seen “per 100 sheets” for toilet rolls and paper towels, and unless one company has...

                    I guess it depends on how the unit price requirements are set up — in Melbourne Australia I’ve only ever seen “per 100 sheets” for toilet rolls and paper towels, and unless one company has significantly smaller or larger sheets, it basically doesn’t matter how many sheets per roll, you’ve got a decent comparison.

                    Queue the recent uptick of “select a size” paper towels that a number of companies have started adopting. For the first time in decades, they now sell paper towels that are about 1/3rd shorter than the typical length, which oh no totally aren’t about misleading customers with unit pricing shenanigans and they’re totally actually about being environmentally friendly by using slightly less paper per wipe up, as per the marketing! For sure!

        2. Macha
          Link Parent
          The first is sometimes not entirely accurate. e.g, it would indicate buying soda in quantities other than 2l is foolish. But as a single person, a 2l soda would be flat before I get to the end of...

          The first is sometimes not entirely accurate. e.g, it would indicate buying soda in quantities other than 2l is foolish. But as a single person, a 2l soda would be flat before I get to the end of it. Similarly 12-packs of eggs, 1kg packs of meat, etc.

          1 vote
      3. Pretzilla
        Link Parent
        Exactly why governments should exist Thank you California

        Exactly why governments should exist

        Thank you California

        4 votes
    2. jackson
      Link Parent
      imo once they have your zip code (for shipping calculations) they should also include sales tax in prices

      imo once they have your zip code (for shipping calculations) they should also include sales tax in prices

      6 votes
  2. [3]
    Webwulf
    Link
    This needs to happen. We just moved to California a couple of months ago and we were caught off guard by all of the fees that you didn't know about until you went to pay the bill. We came from...

    This needs to happen. We just moved to California a couple of months ago and we were caught off guard by all of the fees that you didn't know about until you went to pay the bill. We came from overseas so were surprised by a lot of things. Exceptional increase on the price, asking for a tip for everything as well as a donation to an ambiguous cause, city and state taxes, and then multiple fees for things that should be part of the cost of doing business.

    37 votes
    1. [2]
      timo
      Link Parent
      I never understood why this isn’t illegal. It would be considered a scam in any other situation! Has this never been brought to court?

      I never understood why this isn’t illegal. It would be considered a scam in any other situation! Has this never been brought to court?

      3 votes
      1. Gaywallet
        Link Parent
        A lot of it is city or state mandated. Not to shift blame off corporations for tacking on fees like processing fees (looking at you online ticket sales), but it's pretty hard to fight when the...

        A lot of it is city or state mandated. Not to shift blame off corporations for tacking on fees like processing fees (looking at you online ticket sales), but it's pretty hard to fight when the government is mandating it - it's easy to make the claim that hey look, the government mandates fees like this, why can't we do things the same way?

        3 votes
  3. [3]
    password1
    Link
    I'm a little confused with the current situation, if it's not listed anywhere before you purchase, why can't you argue the bill and refuse to pay the hidden fees when they bring the receipt?

    I'm a little confused with the current situation, if it's not listed anywhere before you purchase, why can't you argue the bill and refuse to pay the hidden fees when they bring the receipt?

    13 votes
    1. skybrian
      Link Parent
      They are likely disclosed somewhere, but not in the number that people would normally use for price comparisons.

      They are likely disclosed somewhere, but not in the number that people would normally use for price comparisons.

      9 votes
    2. knocklessmonster
      Link Parent
      The issue is that they may be, but to use Pizza Hut, a recent encounter I had, it becomes a "service charge" for operating in California, on top of menu price. Instead, Pizza Hut can add $0.50 to...

      The issue is that they may be, but to use Pizza Hut, a recent encounter I had, it becomes a "service charge" for operating in California, on top of menu price.
      Instead, Pizza Hut can add $0.50 to every price to cover the cost.

      Comapnies hate it because they try to depend on consumers to pay attention, or rather expect them to miss the less-than-transparent pricing and just pay it once the order is completed.

      6 votes
  4. Habituallytired
    Link
    "Resort fees" will also have to be baked in to hotel pricing. That's a huge win for people who travel.

    "Resort fees" will also have to be baked in to hotel pricing. That's a huge win for people who travel.

    11 votes
  5. g33kphr33k
    Link
    Being in the UK, it's standard practice to have everything included in the menu price. The restaurant can try it on with additional fees such as a table service charge, but if they are not shown...

    Being in the UK, it's standard practice to have everything included in the menu price.

    The restaurant can try it on with additional fees such as a table service charge, but if they are not shown you don't have to pay.

    10 votes
  6. [2]
    RobotOverlord525
    Link
    I'm from California but have lived in Oregon for over a decade. I can't recall ever going out to eat and seeing any BS fees besides mandatory gratuity on large party sizes. Given that, and the...

    I'm from California but have lived in Oregon for over a decade. I can't recall ever going out to eat and seeing any BS fees besides mandatory gratuity on large party sizes. Given that, and the fact that this bill applies to a lot of things beyond restaurants, I'm a little confused at the restaurant emphasis.

    How pervasive are hidden fees?

    The California law applies to both online and in-person transactions, covering "the sale or lease of most goods and services that are for a consumer's personal use," the attorney general's office said, from short-term rentals and event tickets to hotels, restaurants, and food delivery services.

    "I think it's more common in in online purchases," Engstrom said, adding that she has seen ticket sellers for events tack on fees that add 20% to 30% more to the advertised price.

    Part of the law's goal is to ensure a level playing field, whether companies are trying to attract a concert-goer or a diner. It also targets hotels that might add a "resort fee" to a customer's check-out price, for the use of fairly standard amenities.

    "We know that this is an enormously lucrative opportunity for businesses and not just because of the fee itself," Witte said, "but because of the way that it allows them to take business from other honest businesses who transparently disclose a higher price up front."

    Is this a thing in major metro areas in California right now?

    1 vote
    1. MimicSquid
      Link Parent
      There's a lot of nicer restaurants that are trying to keep staff that have started to add an extra 12-20% fee that is distinct from tips, especially in San Francisco where restaurants now have to...

      There's a lot of nicer restaurants that are trying to keep staff that have started to add an extra 12-20% fee that is distinct from tips, especially in San Francisco where restaurants now have to provide health insurance to their employees. Restaurateurs want to avoid baking the needed price increases directly into the price of the meal, but also need to charge more to cover the increased cost of their employees.

      5 votes