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This bill would allow restaurants to add a surcharge to the amount owed by a paying customer, so long as specific disclosure requirements are followed. This bill responds to the rising operating costs faced by restaurant operators in New York City.

  • Laid Over in Committee

History

Committee on Consumer Affairs and Business Licensing
Hearing Held by Committee
Committee on Consumer Affairs and Business Licensing
Laid Over by Committee
City Council
Referred to Comm by Council
City Council
Introduced by Council

Proposed Int. No. 823-A

 

By Council Members Borelli, Cumbo, Powers, Espinal, Koslowitz and Cornegy

 

A Local Law to amend the administrative code of the city of New York, in relation to allowing restaurant surcharges

 

Be it enacted by the Council as follows:

 

Section 1. Chapter 5 of title 20 of the administrative code of the city of New York is amended by adding a new subchapter 20 to read as follows:

SUBCHAPTER 20

RESTAURANT SURCHARGES

§ 20-832 Definitions. For purposes of this subchapter, the following terms have the following meanings:

Restaurant. The term “restaurant” means a bar, restaurant, or restaurant bar as defined in section 17-502.

Stated price. The term “stated price” means the amount that a customer owes for an individual listed item.  The term “stated price” does not include any additional charge that was not included in the pricing of an individual listed item.

Surcharge. The term “surcharge” means a charge imposed in addition to the stated price of individual listed items. The term “surcharge” does not include tax, gratuity, tip or a charge for the administration of a banquet, special function, or package deal pursuant to section 146-2.19 of subpart 146-2 of part 146 of subchapter B of chapter II of title 12 of the compilation of codes, rules and regulations of the state of New York.

§ 20-833 Disclosure of surcharge. a. A restaurant may impose a surcharge provided that such restaurant discloses the amount of such surcharge to a prospective customer before any item is ordered. The disclosure must be:

1. Written;

2. Explicit that the additional charge is a surcharge and not a gratuity;

3. Clear and conspicuous;

4. Included on each page of any document, whether in paper or electronic format, that lists prices for the customer, including but not limited to any paper or electronic menu;

5. In English, as well as in any other language used in the document upon which the surcharge is disclosed, unless such language is used solely in the names of items; and

6. In a font size similar to surrounding text.

b. A final customer bill or credit card receipt if a credit card is used shall disclose any surcharge imposed and the total dollar amount attributable to such surcharge.

c. A restaurant shall not impose a surcharge in addition to a charge for the administration of a banquet, special function, or package deal pursuant to section 146-2.19 of subpart 146-2 of part 146 of subchapter B of chapter II of title 12 of the compilation of codes, rules and regulations of the state of New York.

§ 20-834 Enforcement. Violation of this subchapter, or any rule promulgated thereunder, shall be punishable by payment of a civil penalty in the amounts provided in subdivisions a and b of section 20-703.

§ 2. This local law takes effect 120 days after it becomes law, except that the commissioner of consumer affairs may take such measures as are necessary for the implementation of this local law, including the promulgation of rules, before such date.

 

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LS #7231/Int. No. 1139-A

LS#919

12/28/17 4:18PM