What happened: The Federal Trade Commission (FTC) recently issued a proposed rule on “Unfair or Deceptive Fees” that would force U.S. businesses to eliminate the use of “hidden” and “misleading” fees. The proposed rule would instead require businesses to post total prices for a service or good, which reflects all costs except shipping and government charges.
Why it matters: If this proposed rule is adopted as written, restaurant operators will have to rewrite their compensation models, increase their menu prices, and overhaul established business practices. Projected compliance costs top $3.5B.
What we're saying: The rule is unworkable as written. The Association strongly opposes this proposed rule and will submit comments.
Learn more: Register for the Association's webinar on the FTC's proposal, happening Thurs., Dec. 7, at 1 p.m. Central.