Florida’s New Transparency Law on Restaurant Fees
Florida plans to reform the display of additional charges on dining bills, introducing one of the strictest transparency laws in the United States. This measure responds to growing frustration over hidden fees.
Governor’s Approval
The law, known as the state’s ‘operations charge’ law, was signed by Governor Ron DeSantis. It will take effect on July 1, 2026.
What the Law Requires
Restaurants and food-service businesses must openly disclose any mandatory fees added to standard menu prices. This includes service fees, automatic gratuities, credit card surcharges, and delivery fees.
- Display extra charges before customers order, visible on menus, websites, and apps.
- State the exact percentage or dollar amount of each fee.
- Explain the purpose of the fee in clear, readable text.
- Bills and receipts must clearly identify and itemize these charges separately.
The rule doesn’t ban these surcharges but requires upfront visibility for customers to know the full meal cost.
Reason for Crackdown
The push for change stems from diners’ complaints of surprise charges at meal’s end. One Facebook user expressed frustration over random fees and the need for transparency like split-plate or credit card fees on menus.
Customers have reported multiple overlapping fees—such as a service charge and preset gratuity—while still being prompted to tip. Lawmakers argue this lack of transparency erodes trust and makes price comparison difficult.
The new rules aim to eliminate ‘bait-and-switch’ pricing, where menu prices appear low compared to the final bill.
Impact on Consumers
The law intends to bring clarity to restaurant pricing.
From July 1, consumers should:
- See the true total cost upfront.
- Understand each fee’s purpose and allocation.
- Make informed dining choices.
Supporters believe it will reduce confusion and prevent unexpected costs, giving consumers more control over spending.
Potential Influence on Other States
Florida’s crackdown is part of a growing state-level push for pricing transparency laws. These laws target restaurants, though few are as focused as Florida’s rule.
The Federal Trade Commission’s Rule on Unfair or Deceptive Fees, effective May 2025, doesn’t apply to restaurants. It covers sectors like ticketing and short-term lodging. This has led states to initiate similar legislation on clearer pricing.
States with Similar Rules
The following states have laws similar to or beyond Florida’s approach:
- California: Aggressive framework requires all business fees in advertised prices. The ‘honest pricing’ law mandates listed prices match the payment.
- Massachusetts: Regulation necessitates upfront price disclosure and fee explanation.
- Colorado and Connecticut: Laws require clear display or total pricing before purchase across industries.
- Minnesota and Oregon: Laws mandate upfront disclosure of total costs to target hidden and misleading pricing practices.
New York’s Unique Approach
New York emphasizes worker protections and fee disclosure:
- Service charges assumed as tips unless explained otherwise.
- New York City requires surcharge or gratuity disclosure before ordering.
This ensures fees are communicated upfront, avoiding customer misleading.
Conclusion
Florida’s law stands out due to its restaurant-specific nature and prescriptive requirements. It could serve as a test for other states.
If consumer complaints decrease without harming restaurant operations, lawmakers might adopt similar dining-focused rules, distinct from broader consumer protection laws. The trend shows a move towards all-in pricing and upfront fee disclosure.