On April 28, Arizona Attorney General Kris Mayes announced a settlement with two Phoenix-area restaurants — Etta Scottsdale LLC and Maple & Ash Scottsdale LLC — over undisclosed add-on charges. AG Mayes claimed that the restaurants charged a 3.5% “employee benefits charge” to walk-in customers not disclosed on either restaurant’s menu, which allegedly violated the Arizona Consumer Fraud Act.
As part of the settlement, the company agreed to pay $20,000 in civil penalties and to stop charging fees not disclosed on the menu. Additionally, the restaurants must disclose the 3.5% charge on their physical and online menus.
Why It Matters
Regulators, including the FTC and state AGs, continue to scrutinize undisclosed hidden or “junk” fees. Their enforcement has become increasingly prevalent across a range of industries — from hospitality and ticketing to restaurant and food delivery. As such, the Arizona AG’s latest action makes it clear that companies must be transparent in their pricing practices and disclose all fees to consumers.
