A measure in New Jersey would mandate that eateries reveal required tips.
Trenton, New Jersey. In order to avoid penalties under the state’s Consumer Fraud Act, restaurants would have to explicitly disclose any forced gratuity costs to patrons, according to new legislation that was introduced in the New Jersey Legislature.
The measure would require restaurants to prominently post information about necessary gratuities on their menus, at the entry, on the bill for patrons, and, if they have one, on their websites. Failing to do so would be deemed an illegal activity that could result in penalties and legal action.
According to the bill, it is illegal for anybody to impose an obligatory gratuity in a restaurant without clearly displaying the amount on the menu, at the door, on a customer’s bill, and, if relevant, on the establishment’s website.
Financial penalties of up to $10,000 for a first violation and up to $20,000 for successive crimes might result from breaking the proposed law. The Attorney General’s cease and desist orders, punitive damages, treble damages, and the harmed party’s legal expenses being reimbursed are examples of additional sanctions.
Strengthened consumer safeguards
According to the bill’s supporters, the goal is to prevent unexpected fees and improve transparency for restaurant customers. Stricter disclosure standards would now apply to mandatory gratuities, which are sometimes applied automatically for special services or large gatherings in order to prevent misunderstandings or billing conflicts.
The first day of the third month after enactment is when the measure is expected to go into effect.
If passed, the bill will strengthen current regulations governing pricing disclosures and provide new consumer protections for New Jersey’s eating industry.
