What does a service fee ban mean for California diners? Expect that $39 chicken to cost $49
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Coming this summer is a new state law that bans unadvertised service fees, surcharges and other additional costs that are added to the end of a bill for meals or delivery service.
On July 1, Senate Bill 478, which Gov. Gavin Newsom signed into law in October, is set to prohibit "junk fees" across a wide swath of businesses, including online ticket sales, hotels, restaurants, bars and delivery apps.
Sens. Bill Dodd (D-Napa) and Nancy Skinner (D-Berkeley), who co-wrote the bill, say it will offer greater protections for consumers.
"These deceptive fees prevent us from knowing how much we will be charged at the outset," Attorney General Rob Bonta, who co-sponsored the measure, said in a statement the day it was signed. "They are bad for consumers and bad for competition. ... With the signing of SB478, California now has the most effective piece of legislation in the nation to tackle this problem. The price Californians see will be the price they pay."
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