Councilman David G. Greenfield recently introduced City Council legislation that would require restaurants to clearly disclose to customers when an automatic gratuity has been added to a meal check. Under the proposed law, restaurants would have to conspicuously disclose in writing on the customer’s bill and credit card receipt when a patron has been charged an automatic or suggested tip. In recent years, automatic tips on lunch, dinner and drink bills have become commonplace at restaurants and bars around New York City. In response, Councilman Greenfield introduced this law to protect consumers from unwittingly tipping twice on a single bill.

“This is a matter of fairness for everyone who dines at the many great restaurants in New York City. Just about anyone who eats out on a regular basis has left a gratuity without realizing that the tip had already been included in the check or knows somebody who has done so. The idea is not to hurt the hard-working staff at restaurants who deserve and rely on tips, but to prevent restaurants from tricking people into tipping twice. It’s really a matter of common sense,” said Councilman Greenfield.

The law would be enforced by the Department of Consumer Affairs, with restaurants facing a fine of up to $250 for failing to clearly inform consumers of an added gratuity. The disclosure will appear on both the bill and the credit card receipt if the meal is charged, in a font size determined by the DCA commissioner. The bill was introduced at last Wednesday’s City Council Stated meeting and has been referred to committee for hearings.

(YWN Desk – NYC)