The Federal Trade Commission (FTC) is proposing significant changes to restaurant pricing, aiming to eliminate mandatory fees and provide recommendations on tipping and credit card charges. The National Restaurant Association (NRA) is closely monitoring, expressing concerns about perceived overreach. The NRA highlights potential impacts on restaurants, questions the FTC's authority, and emphasizes the need for industry education. Updates for LRA members will be provided as discussions progress.
Here's a brief summary of the proposed changes, NRA concerns, and ongoing efforts to inform the restaurant community.
Proposed Impact on Restaurants:
Concerns about FTC Overreach from the NRA:
"This proposed rule appears to be a scattershot plan that both attacks the restaurant business model and forces us to raise our prices. Small business restaurant owners create the economic engines of their local economies, which is why it is disappointing that this proposed rule appears to be a one-size-fits-all rule for businesses big and small. We’re still closely reviewing what the FTC has included about restaurants and analyzing the ways in which their proposal will fundamentally change the way restaurants do business so that we can provide appropriate comments on what we expect will be far-reaching impacts." --Sean Kennedy, Executive Vice President of Public Affairs, National Restaurant Association
Rough Timeline for the FTC Proposed Rule on “Unfair or Deceptive Fees”:
We appreciate your ongoing attention to this matter and will keep you updated as we delve deeper into the implications of the proposed rule.