CFA Opposes Restaurant Industry Junk Fee
CFA filed a letter with the D.C. Council opposing legislation which would result in a mandatory “service charge” of up to 22% at D.C. restaurants and bars. The bill would provide tax incentives for imposing the fee, and does not require any clear disclosure or explanation of the fee to consumers. The bill would also permit the service fee to be disguised to look like a tip, when in reality it would not be paid to employees in the manner in which a tip is typically paid. District residents are openly frustrated with restaurant fees, and instead of responding to these concerns, the bill sanctions the practice and serves the interests of the restaurant industry. CFA strongly opposes this bill.
