This bill mandates that restaurants disclose any mandatory gratuity charges to patrons in a clear and prominent manner. The required points of disclosure include the menu, the entrance of the restaurant, the patrons' bills, and, if applicable, the restaurant's website. Failure to provide this disclosure is classified as an unlawful practice under the consumer fraud act, which carries penalties including monetary fines, cease and desist orders from the Attorney General, and potential punitive damages.

The bill establishes that a first offense for failing to disclose a mandatory gratuity can result in a fine of up to $10,000, while subsequent offenses may incur fines of up to $20,000. The act is set to take effect on the first day of the third month following its enactment.