As dining in the nation’s capital becomes more expensive, the attorney general in Washington released new guidelines on how restaurants should disclose their service fees.
Customers have largely complained about the recent price hikes on their restaurant checks, especially in the wake of the implementation of Initiative 82, a law that added a 3.5% fee starting in July to compensate tipped employees better. In response, Attorney General Brian Schwalb decided to crack down further on restaurants that are not transparent about their additional fees to ease the public’s concerns.
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“Diners are frequently confused by vaguely labeled fees that appear on their restaurant bills and should be able to make fully informed decisions about how to spend their hard-earned money before placing their orders,” Schwalb said in a statement released on Wednesday. “District law requires restaurants to disclose any fees in a timely, prominent, and accurate manner.”
Dining in DC & confused about all the fees?
— AG Brian Schwalb (@DCAttorneyGen) August 10, 2023
DC law requires restaurants to disclose any fees in a timely, prominent & accurate manner. Yesterday, my office released an advisory to help restaurants comply with the law & ensure customers know their rights. https://t.co/GIZsCC3RDJ
Read the full Advisory here: https://t.co/rXfeDnzzv3
— AG Brian Schwalb (@DCAttorneyGen) August 9, 2023
If businesses do not abide by the new rules, they will be fined up to $5,000 for first-time offenders and $10,000 for repeated offenses, Axios reported. Apart from the new Initiative 82 fees, the attorney general has outlawed the “deceptive” use of 4% wellness fees and 5% restaurant recovery charges since March.
Schwalb previously took action by sending a letter to approximately 2,460 Washington restaurants, requesting their fees be “prominently, clearly, and accurately disclosed.” While it is legal to charge service fees, customers must adequately know about them before paying.
As a result of Schwalb’s warning, restaurants are required to state the reason for the fee and the amount.
Regarding this week’s advisory, restaurant owners are grateful for the attorney general’s direct action. One said the warning to dining establishments was “especially helpful.”
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“With these clearer guidelines, restaurant operators have guidance in the language we should use and can get back to focusing on what we love doing, welcoming and serving our guests,” said Diane Gross, owner of Cork Wine Bar and Market.
If people who live in Washington have complaints or questions about restaurant service fees, they can contact the attorney general’s office by texting “COMPLAINT” to 202-738-5212 or calling 202-442-9828.