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CONSUMER CORNER
Beware of hidden fees and charges imposed by restaurants
Have you been surprised by service charges on your restaurant bill or bar tab? Our office has received complaints that some businesses have been tacking on hidden service charges to consumer bills. While service fees are not outright prohibited, establishments must disclose them to consumers.
The Commonwealth Consumer Protection Act prohibits businesses from engaging in practices that are unfair or deceptive to the consumer. It is unfair for a business to impose undisclosed service fees. To properly disclose fees, the establishment must post conspicuous notice of any fees. Notice can be provided by a standalone sign or in the establishment’s menus, so long as it provides reasonable notice to the customers.
Be sure to review your bills for fees and other improper charges. If you notice a fee or charge for which you were not provided notice, raise the issue with the business. If you are not able to resolve the matter with the business, file a consumer complaint with our office. Complaint forms are available at the Civil Division on Capitol Hill or you can request one via email to cnmiconsumercounsel@gmail.com.
There have also been complaints of rounding charges. “Rounding” occurs when a business adds an additional charge to your bill to make the total amount an even number. For example, if your total bill was $15.94, the restaurant would impose a rounding fee of $0.06 and charge you a total $16. This practice is unfair and deceptive—businesses cannot charge you more than (but they could charge you less than!) the price listed on their menus. If you are charged a rounding fee, raise the matter with the business and file a consumer complaint.
The information contained in this article is for general informational purposes only and is not intended to provide legal advice to any individual or entity. This information is not intended to create, and the reading of it does not constitute, an attorney-client relationship.
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Teresita J. Sablan is the consumer counsel of the Office of the Attorney General.
