The National Restaurant Association and the Restaurant Law Center have petitioned the Federal Trade Commission (FTC) to exempt restaurants from its proposed regulation on deceptive fees. In their joint comments submitted on the proposal, these organizations argue that a blanket ban on concealed and misleading fees would be "unwarranted, unlawful, and would create significant unintended consequences for consumers."

According to an FTC press release, the proposed rule, announced in October 2023, aims to prohibit hidden fees—defined as advertising prices that do not disclose mandatory charges—and bogus fees or misrepresented charges. The deadline for comments on the proposal was initially set for January 8, 2024, but it has been extended by the FTC until February 7.

"The FTC's proposed 'junk fees' rule will unleash nothing but chaos and confusion for restaurant owners and diners alike," said Sean Kennedy, executive vice president of public affairs at the National Restaurant Association. He added that "Restaurant customers understand that they will pay extra if they are having food delivered or are dining with a large party. Fees for these services aren't 'junk fees'—they reflect the higher costs that a restaurant is taking on to make a customer's experience even more convenient."

In a joint press release issued by both organizations, it was stated that this proposed rule would compel restaurant operators to modify their menus to display a single total price for each item. They highlighted that according to FTC estimates, this overhaul could cost the restaurant industry $3.5 billion.

"Imagine walking into a restaurant and the person at the desk asks you how you're going to be paying that evening. This would become an uncomfortable reality in a world where restaurants can't use surcharges and are forced to provide a menu for large parties, one for smaller parties, one for people paying with credit cards, one for takeout, and one for delivery," both organizations warned in their joint comments.