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.
Violations of this bill can result in significant penalties, including a monetary fine of up to $10,000 for a first offense and up to $20,000 for subsequent offenses. Additionally, the Attorney General may issue cease and desist orders, and violators may face punitive damages, as well as the possibility of treble damages and costs awarded to the injured party. The bill is set to take effect on the first day of the third month following its enactment.