Big Win! FTC Junk Fee Ban Excludes Restaurants

Lobbying Efforts Were Successful
After a 15-month advocacy campaign, restaurant operators have secured a major win from the Biden Administration. Restaurant service fees, delivery fees, credit card surcharges, and other fees have been excluded from a federal ban on so-called “junk fees.”

This morning, a final rule from the Federal Trade Commission (FTC) limited the prohibition on junk fees to live-event tickets and short-term lodging (hotel, motel, inns, etc.).

In 2023, the FTC proposed to ban commonly used restaurant charges and force these fees into menu prices. The FTC estimated this mandate would cost the restaurant industry about $3.5 billion to comply and add at least $4,800 in costs for every restaurant location that would be required to update their menu pricing. The National Restaurant Association and the Wisconsin Restaurant Association lobbied on the industries behalf and rallied restaurant operators to contact the FTC with their concerns.

Your Voice Made a Difference
Thanks to the thousands of operators who raised concerns with the FTC’s action, both directly with the agency and with Capitol Hill lawmakers, we are proud that restaurants are not included in the final rule.
 
Questions? Email Susan Quam

Read Final Rule