Anonymous
By the Santa Barbara County District Attorney’s Office
The Consumer and Environmental Protection Unit of the Santa Barbara County District Attorney’s Office has become aware of several restaurants in the county charging mandatory service fees and surcharges without conspicuously disclosing them to customers before they place orders.
The law requires restaurants to clearly and conspicuously disclose any fees or surcharges added to a customer’s bill before customers place their orders. Consumers are entitled to accurate price information to enable them to make informed decisions about what to purchase.
California’s False Advertising Law, Business and Professions Code section 17500, prohibits making any untrue or misleading statements or advertisements in connection with the sale of goods or services. Failing to disclose material information, such as fees and surcharges, is considered misleading for purposes of the False Advertising Law. In the context of restaurant services, all components of the charge for food, beverages, and/or services must be clearly and conspicuously disclosed to the consumer before the consumer places their order.
Restaurants must prominently disclose all added fees or charges (such as a mandatory service charge, inflation surcharge, required gratuity, or credit card processing fee) in such a way that the patron is fully aware, prior to placing their order, of the entire price that will be charged. The necessary disclosure must be sufficiently large or otherwise formatted (with typeface or color) to be readily seen and understood by all customers.
Violations of the False Advertising Law can be prosecuted as misdemeanors or as civil violations, with remedies including monetary penalties, permanent injunctions, and agency enforcement costs.
If you wish to report any undisclosed restaurant fees or surcharges, please complete the Consumer Complaint Form located here: https://da.countyofsb.org/da/consumer-protection.
I love the iPad thingies with the suggested tips already formatted – especially the ones that start at 20% and go up to as much as 35%.
I don’t know about you, but a 35% tip better include a free car wash while I eat.
Servers in Europe are paid a living wage.
I think every single person should be REQUIRED to do a stint in restaurant customer service so they can see how grueling it is. People who moan about tips are the worst.
BIGUGLY, California requires minimum wage be paid to workers BEFORE tips. It is a waaaaay different story here in CA than in other states that pay $3/hr or less before tips.
Furthermore, restaurant costs of running business have increased substantially over the past couple of years. This means tipping amount based on the same percentage of the total has increased substantially as well.
But you know what hasn’t changed? Staff jobs. They are doing the same work as before. It makes total logical sense to tip a lower percentage these days, which equates to the same amount overall.
If you want to talk about a real tipping injustice, how about the kitchen staff getting ZERO from every single tip you give? That truly disgusts me. They deserve more than the plate carriers IMO.
I just came back from Europe. The usual tip amount where I was visiting is “up to 10%.” Tipping in the US has gotten out of control.
Tip$ Thi$
Absolutely agree Big. I was a server during college and it completely changed my perspective. Everyone should know what it’s like to work in the food industry, or at least customer service.
Being a server is a life-long career in Europe where folks are paid a living wage and have health insurance and retirement benefits. This type of service charge (in lieu of tips at nice restaurants) is often literally to try to get to the level of quality of life for servers.
BIGUGLYSTICK I have worked in the restaurant industry off and on for 40 years, and I disagree with these hidden fees. I also don’t support mandatory tips, nor do I tip 18-20% for poor service. Believe me, I have worked in places where I drip sweat while running to tables. Still don’t support this.
BIGUGLY – so you find it fitting to pay a 20-25% tip to someone for simply handing you the food from the counter behind them? These are high school kids making $18 an hour or more at most places. Tipping should be for quality service, not an obligatory charge for the least amount of work you can possibly do (turning around to grab a bag of takeout from the cooks).
I’ve worked in delivery food service, long before Doordash, etc. My wages AND gas relied primarily on tips. I know the pain. That’s not how it is for takeout and online order pick up these days. I tipped over 20% numerous times at a certain restaurant for picking up online orders, which EVERY time were missing something. I no longer go there for that reason.
The practice is rife. Saw it today at Home Plate Grill in Goleta – 3% ‘service fee.’ Not disclosed except in the fine print on the credit card receipt. Appears to represent transferring the cost of credit card processing to the customer. In that case, the defense is to pay cash. One could also deduct the cost from the tip, but that penalizes the wrong party. Some places call it an ‘inflation charge,’ but that is BS – inflation should be reflected in the businesses’ cost input, passed along in pricing. Bottom line, such charges are deceptive and violate CA law, and the DA should be pursing violators, not just putting out a form for consumers to file complaints.
BTW, it was not at a Mexican restaurant.
What’s worse is one of these establishments in a center on De La Vina had employees who were able to clone my debit card. They somehow had my pin code and tried to take out hundreds at a mechanics bank. Thought i’d forget huh? I made the mistake of not reporting my card lost since I found it the next day at this restaurant. Beware people, beware! A few weeks later the story unfolded!!!
Using a debit card for anything but an ATM is foolish these days. Your money has little to no protection. Get a credit card and use it responsibly. If you have bad credit, look into secured credit cards.
If the DA is aware of “several restaurants” doing this, why not list them here?
Agree.. list the restaurants!
I just saw one of these on a receipt, but can’t remember which restaurant. It was under $2 for a $50+ meal, but still was annoying that it wasn’t disclosed. Why not just build it into the price of the food? Kinda shady to just add on a “Service Fee” when I ordered online and the person at the counter simply hands me my food. What “service?” Even worse is when I’ve already tipped or when I order at the counter and they charge a service fee PLUS turn the the screen to me asking for a 15-25% tip for doing nothing more than taking my money and handing me the food. Ugh….. I am starting to sound old and grouchy! Darn kids! Turn the music down!
Someone posted on NextDoor about Pickle & Swiss charging an inflation fee.
Inflation fee$? #$%%$&@
Kyle’s Kitchen on Hollister does this. They have a miscellaneous fee which is never mentioned before you pay.
Agree totally w/Sacjon & others that tipping has gotten WAY out of hand. We tip a minimum of 20% for good service at cafes where we are ‘regulars’. We are showing our gratitude for the ‘personal’ service. I don’t think a tip should be ‘divided amongst the house’. We should not have to pay more so the business owner can make more money by paying their cooks less than they deserve… and the servers also get get less $. 🙁 ……. I wish we could return to the way it is done in Europe.
Why aren’t the restaurants named? Since they are doing something illegal that affects the public, we should know who they are. They deserve some shaming! FFS just build the fees into the price of the food. Stop making the public responsible for your (the owners) poor business practices. And that includes paying a living wage to your hard-working staff. If you can’t make a profit doing it the correct and honest way, then close your doors.
“Failing to disclose material information, such as fees and surcharges, is considered misleading for purposes of the False Advertising Law.”
Ironic that you would say this while simultaneously failing to disclose the restaurants that are breaking this Law. SMH.
It’s CRIMINAL, fraud! Right?
I had a $9 dollar service charge in San Francisco. When I asked what the charge was for the server said it was to off set the health insurance for workers. So I’m this world some get free insurance some get insurance by employer subsidized by patrons and others pay expensive premiums. Something is not right here.
I had a restaurant in Carp add a $30 tip, after the fact. We had given them a generous $10 tip, can they do that?? Check your statements! These ####### ######## are outrageus!!
“Bank Statements”
“So I’m this world some get free insurance some get insurance by employer subsidized by patrons and others pay expensive premiums. Something is not right here.”
Many people get employer-subsidized health insurance, not just restaurant workers. Every time you buy an item or a service from your business, part of that payment goes towards subsidizing employee benefits, including health insurance. Are you upset that those companies don’t itemize the “benefits fee” when you purchase something from them? Seems like a bit of a double standard.
I think many people feel the restaurants pricing should reflect their cost of doing business, including wages/benefits for employees. Tipping should be for the personal service component.
If they’re charging service fees for inflation they just keep the money as income but get to write it off as a business expense when filing taxes. Same as with credit card fees. Do you think they use that money to pay the credit card companies. Nope, they’re passing the charge on to you and they get to write it off as a business expense at the end of the year.
I was just surprised by this at Chase Restaurant. Didn’t notice until I reviewed my receipt at home.
Chase flaunted public health regulations during the pandemic. Do not patronize an establishment that doesn’t care whether you live or die.
I was at Daily Grind and they have their payment screen prefilled with tips that start at 20% and go up. I couldn’t find an option to select no tip and give them cash instead so had to tip 20% just for a coffee. Pretty ridiculous.
You can definitely select no tip… Look harder or ask for help entering a “custom” tip
Shalhoobs