A last-minute, emergency bill, SB-1524, was signed into law over the weekend by Governor Newsom. SB-1524 effectively modifies SB-478, the so-called junk-fee ban, which became effective today. As discussed, the exemption detailed under SB-1524 allows restaurants, bars and other food service businesses to continue to add mandatory fees (including service fees, surcharges and others) so long as the fee is clearly and conspicuously displayed. The law does not define where and how the fee disclosure must be made to satisfy the standard of clear and conspicuous.

The remainder of SB-478 protecting consumers from junk fees goes into effect today. Here is a refresher on that law.