Dining out is a cherished pastime for many Australians, but a recent incident has highlighted a potential pitfall that could leave you out of pocket.

A woman who offered to foot the bill first at a group dinner was left short-changed when she discovered a sneaky charge had been added to her bill.

This raised the question: Can restaurants legally do such a thing without explicit customer consent?

Cara, a Queensland resident, recently shared her experience.

After dining out with a large group, she offered to pay the bill, totalling $759, with the understanding that her friends would reimburse her later on.

However, when she received the reimbursements, she soon realised she was almost $76 short.

A woman noticed something odd with her bill after a dinner with friends. Image source: Freepik.

Upon reviewing the bill, she discovered the restaurant had added a 'sneaky' 10 per cent gratuity.

Despite the service being less than satisfactory, Cara found herself out of pocket due to this unexpected charge.

She then contacted the restaurant involved about the charge, and she said they pointed out that the gratuity fee was in fine print.

With the service they received unsatisfactory in her opinion, she was left with a burning question: ‘Can restaurants really add this to the bill without our permission?’

According to Alison and Jillian Barrett, Resident Lawyers at law firm Maurice Blackburn, provided that the surcharges are communicated in a clear, transparent, and prominent manner, restaurants can legally add this charge to the bill.

‘There is no need for them to advertise these additional fees on large signs, nor for you to sign an agreement outlining all the charges before ordering,’ they said.

‘It is enough that they are “in the fine print” at the bottom of the menu, or if you’re ordering from an app, that it’s listed on that.’

There is no limit to how much extra a business can charge a customer in additional costs, as long as the terms are explicitly stated and don't come as a surprise to the customer.

The pair then advised diners to revisit the restaurant and re-check their menu if they don't recall seeing a notice about the automatic gratuity.

Some restaurants have their menus available online, and you might be able to review them there.

If you can, take photos of the menu to demonstrate that there was no mention of the fixed gratuity or that it wasn't clearly marked.

If the gratuity isn't clearly displayed, you can request a refund from the restaurant.

If the restaurant refuses to issue a refund, you can lodge a complaint with the Australian Competition and Consumer Commission (ACCC), which has the power to investigate and enforce penalties for excessive, hidden charges.

How to Protect Yourself from Unexpected Charges

To avoid unpleasant surprises, always check the fine print on the menu or ask the staff about any additional charges before ordering.

If you're splitting the bill with friends, make sure everyone is aware of any added gratuities or service charges.

If you're paying by card, review the total amount before entering your PIN.

Key Takeaways

• It is legal for venues in Australia to impose a gratuity fee, provided they communicate the surcharge in a clear and transparent manner on the menu or app.
  
• There is no limit to the amount a business can charge for additional costs as long as the conditions are stated explicitly and are not surprising to the customer.
  
• If the gratuity fee was not prominently displayed or communicated to the customer, they can take photographs of the menu, speak with the restaurant, and potentially seek a refund or complain to the ACCC.

Members, have you ever encountered a similar situation? How did you handle it? Share your experiences and tips in the comments below.

 

[Cheviegirl]

Dining out is a cherished pastime for many Australians, but a recent incident has highlighted a potential pitfall that could leave you out of pocket.

A woman who offered to foot the bill first at a group dinner was left short-changed when she discovered a sneaky charge had been added to her bill.

This raised the question: Can restaurants legally do such a thing without explicit customer consent?

Cara, a Queensland resident, recently shared her experience.

After dining out with a large group, she offered to pay the bill, totalling $759, with the understanding that her friends would reimburse her later on.

However, when she received the reimbursements, she soon realised she was almost $76 short.

View attachment 39682

A woman noticed something odd with her bill after a dinner with friends. Image source: Freepik.

Upon reviewing the bill, she discovered the restaurant had added a 'sneaky' 10 per cent gratuity.

Despite the service being less than satisfactory, Cara found herself out of pocket due to this unexpected charge.

She then contacted the restaurant involved about the charge, and she said they pointed out that the gratuity fee was in fine print.

With the service they received unsatisfactory in her opinion, she was left with a burning question: ‘Can restaurants really add this to the bill without our permission?’

According to Alison and Jillian Barrett, Resident Lawyers at law firm Maurice Blackburn, provided that the surcharges are communicated in a clear, transparent, and prominent manner, restaurants can legally add this charge to the bill.

‘There is no need for them to advertise these additional fees on large signs, nor for you to sign an agreement outlining all the charges before ordering,’ they said.

‘It is enough that they are “in the fine print” at the bottom of the menu, or if you’re ordering from an app, that it’s listed on that.’

There is no limit to how much extra a business can charge a customer in additional costs, as long as the terms are explicitly stated and don't come as a surprise to the customer.

The pair then advised diners to revisit the restaurant and re-check their menu if they don't recall seeing a notice about the automatic gratuity.

Some restaurants have their menus available online, and you might be able to review them there.

If you can, take photos of the menu to demonstrate that there was no mention of the fixed gratuity or that it wasn't clearly marked.

If the gratuity isn't clearly displayed, you can request a refund from the restaurant.

If the restaurant refuses to issue a refund, you can lodge a complaint with the Australian Competition and Consumer Commission (ACCC), which has the power to investigate and enforce penalties for excessive, hidden charges.

How to Protect Yourself from Unexpected Charges

To avoid unpleasant surprises, always check the fine print on the menu or ask the staff about any additional charges before ordering.

If you're splitting the bill with friends, make sure everyone is aware of any added gratuities or service charges.

If you're paying by card, review the total amount before entering your PIN.

Key Takeaways

• It is legal for venues in Australia to impose a gratuity fee, provided they communicate the surcharge in a clear and transparent manner on the menu or app.
• There is no limit to the amount a business can charge for additional costs as long as the conditions are stated explicitly and are not surprising to the customer.
• If the gratuity fee was not prominently displayed or communicated to the customer, they can take photographs of the menu, speak with the restaurant, and potentially seek a refund or complain to the ACCC.

Members, have you ever encountered a similar situation? How did you handle it? Share your experiences and tips in the comments below.

I will NOT accept any amount just added to my bill. If I am happy with the service I prefer to tip that person. In Australia the wages are good & fair. No need to add on anything, food is dear enough as it is. I have always left a tip if I am happy with the service. I loathe shared tip jars, I like to tip my regular two waitresses.

 

[Petra]

Thanks but no thanks.

 

[Suzanne rose]

Being in fine print ,to me that's dishonest. Who reads the fine print.

Any restaurant that add this 10% charge are trying to add the tipping that other countries do except calling it a different name.

Once when our family we went to a restaurant for a birthday I called to ask if we could bring in a cake, they replied Certainly but when we received our bill they added a cake age fee of $50 being for them cutting and serving the cake.

So now when we book for a birthday dinner we ask can we bring a cake and ask if they charge cakeage and if they do we go somewhere else.

 

[Rob44]

As our banking industry says, "Never give a sucker an even break".

 

[Mrtnst]

This is the sort of 'service' that 1 star reviews were invented for.

It's legal for them to do it, but it's equally legal for you to tell the world about it.

They soon get the message if their online rating starts to tumble.

 

[siameezer]

Being in fine print ,to me that's dishonest. Who reads the fine print.

Any restaurant that add this 10% charge are trying to add the tipping that other countries do except calling it a different name.

Once when our family we went to a restaurant for a birthday I called to ask if we could bring in a cake, they replied Certainly but when we received our bill they added a cake age fee of $50 being for them cutting and serving the cake.

So now when we book for a birthday dinner we ask can we bring a cake and ask if they charge cakeage and if they do we go somewhere else.

I actually think a cakeage fee is fair, but $50 is excessive. Not only is the restaurant missing out on dessert sales, but the staff still have to serve it and clean up the crockery and cutlery used afterwards.

 

[Suzanne rose]

I actually think a cakeage fee is fair, but $50 is excessive. Not only is the restaurant missing out on dessert sales, but the staff still have to serve it and clean up the crockery and cutlery used afterwards.

We still get desserts and I'm always happy to take in paper plates and serve it myself.
Two weeks ago the restaurant we went to was more than happy to do it and no charge . By them doing that and their amazing service and good food will definitely get us back

 

[Luckyus]

Dining out is a cherished pastime for many Australians, but a recent incident has highlighted a potential pitfall that could leave you out of pocket.

A woman who offered to foot the bill first at a group dinner was left short-changed when she discovered a sneaky charge had been added to her bill.

This raised the question: Can restaurants legally do such a thing without explicit customer consent?

Cara, a Queensland resident, recently shared her experience.

After dining out with a large group, she offered to pay the bill, totalling $759, with the understanding that her friends would reimburse her later on.

However, when she received the reimbursements, she soon realised she was almost $76 short.

View attachment 39682

A woman noticed something odd with her bill after a dinner with friends. Image source: Freepik.

Upon reviewing the bill, she discovered the restaurant had added a 'sneaky' 10 per cent gratuity.

Despite the service being less than satisfactory, Cara found herself out of pocket due to this unexpected charge.

She then contacted the restaurant involved about the charge, and she said they pointed out that the gratuity fee was in fine print.

With the service they received unsatisfactory in her opinion, she was left with a burning question: ‘Can restaurants really add this to the bill without our permission?’

According to Alison and Jillian Barrett, Resident Lawyers at law firm Maurice Blackburn, provided that the surcharges are communicated in a clear, transparent, and prominent manner, restaurants can legally add this charge to the bill.

‘There is no need for them to advertise these additional fees on large signs, nor for you to sign an agreement outlining all the charges before ordering,’ they said.

‘It is enough that they are “in the fine print” at the bottom of the menu, or if you’re ordering from an app, that it’s listed on that.’

There is no limit to how much extra a business can charge a customer in additional costs, as long as the terms are explicitly stated and don't come as a surprise to the customer.

The pair then advised diners to revisit the restaurant and re-check their menu if they don't recall seeing a notice about the automatic gratuity.

Some restaurants have their menus available online, and you might be able to review them there.

If you can, take photos of the menu to demonstrate that there was no mention of the fixed gratuity or that it wasn't clearly marked.

If the gratuity isn't clearly displayed, you can request a refund from the restaurant.

If the restaurant refuses to issue a refund, you can lodge a complaint with the Australian Competition and Consumer Commission (ACCC), which has the power to investigate and enforce penalties for excessive, hidden charges.

How to Protect Yourself from Unexpected Charges

To avoid unpleasant surprises, always check the fine print on the menu or ask the staff about any additional charges before ordering.

If you're splitting the bill with friends, make sure everyone is aware of any added gratuities or service charges.

If you're paying by card, review the total amount before entering your PIN.

Key Takeaways

• It is legal for venues in Australia to impose a gratuity fee, provided they communicate the surcharge in a clear and transparent manner on the menu or app.
• There is no limit to the amount a business can charge for additional costs as long as the conditions are stated explicitly and are not surprising to the customer.
• If the gratuity fee was not prominently displayed or communicated to the customer, they can take photographs of the menu, speak with the restaurant, and potentially seek a refund or complain to the ACCC.

Members, have you ever encountered a similar situation? How did you handle it? Share your experiences and tips in the comments below.

I alone decide on/if any gratuity is warranted as it's mine and mine alone to consider whether or not any such tip is applicable?.

 

[siameezer]

We still get desserts and I'm always happy to take in paper plates and serve it myself.
Two weeks ago the restaurant we went to was more than happy to do it and no charge . By them doing that and their amazing service and good food will definitely get us back

That was exceptional service and I can see why you would go back!

 

[Annna]

Being in fine print ,to me that's dishonest. Who reads the fine print.

Any restaurant that add this 10% charge are trying to add the tipping that other countries do except calling it a different name.

Once when our family we went to a restaurant for a birthday I called to ask if we could bring in a cake, they replied Certainly but when we received our bill they added a cake age fee of $50 being for them cutting and serving the cake.

So now when we book for a birthday dinner we ask can we bring a cake and ask if they charge cakeage and if they do we go somewhere else.

$50.00 is expensive for serving.

 

[BabsL]

Dining out is a cherished pastime for many Australians, but a recent incident has highlighted a potential pitfall that could leave you out of pocket.

A woman who offered to foot the bill first at a group dinner was left short-changed when she discovered a sneaky charge had been added to her bill.

This raised the question: Can restaurants legally do such a thing without explicit customer consent?

Cara, a Queensland resident, recently shared her experience.

After dining out with a large group, she offered to pay the bill, totalling $759, with the understanding that her friends would reimburse her later on.

However, when she received the reimbursements, she soon realised she was almost $76 short.

View attachment 39682

A woman noticed something odd with her bill after a dinner with friends. Image source: Freepik.

Upon reviewing the bill, she discovered the restaurant had added a 'sneaky' 10 per cent gratuity.

Despite the service being less than satisfactory, Cara found herself out of pocket due to this unexpected charge.

She then contacted the restaurant involved about the charge, and she said they pointed out that the gratuity fee was in fine print.

With the service they received unsatisfactory in her opinion, she was left with a burning question: ‘Can restaurants really add this to the bill without our permission?’

According to Alison and Jillian Barrett, Resident Lawyers at law firm Maurice Blackburn, provided that the surcharges are communicated in a clear, transparent, and prominent manner, restaurants can legally add this charge to the bill.

‘There is no need for them to advertise these additional fees on large signs, nor for you to sign an agreement outlining all the charges before ordering,’ they said.

‘It is enough that they are “in the fine print” at the bottom of the menu, or if you’re ordering from an app, that it’s listed on that.’

There is no limit to how much extra a business can charge a customer in additional costs, as long as the terms are explicitly stated and don't come as a surprise to the customer.

The pair then advised diners to revisit the restaurant and re-check their menu if they don't recall seeing a notice about the automatic gratuity.

Some restaurants have their menus available online, and you might be able to review them there.

If you can, take photos of the menu to demonstrate that there was no mention of the fixed gratuity or that it wasn't clearly marked.

If the gratuity isn't clearly displayed, you can request a refund from the restaurant.

If the restaurant refuses to issue a refund, you can lodge a complaint with the Australian Competition and Consumer Commission (ACCC), which has the power to investigate and enforce penalties for excessive, hidden charges.

How to Protect Yourself from Unexpected Charges

To avoid unpleasant surprises, always check the fine print on the menu or ask the staff about any additional charges before ordering.

If you're splitting the bill with friends, make sure everyone is aware of any added gratuities or service charges.

If you're paying by card, review the total amount before entering your PIN.

Key Takeaways

• It is legal for venues in Australia to impose a gratuity fee, provided they communicate the surcharge in a clear and transparent manner on the menu or app.
• There is no limit to the amount a business can charge for additional costs as long as the conditions are stated explicitly and are not surprising to the customer.
• If the gratuity fee was not prominently displayed or communicated to the customer, they can take photographs of the menu, speak with the restaurant, and potentially seek a refund or complain to the ACCC.

Members, have you ever encountered a similar situation? How did you handle it? Share your experiences and tips in the comments below.

Rarely, to date. We only TIP if the service and experience was excellent!
Unfortunately, we are finding that most ‘service’ is careless, even grumpy, younger waiters answer back and argue with paying customers, and have soured the experience more often than not.
Charging an extra ten per cent of the bill for crap service is wrong!
If they want a tip, be nice and do yr job properly. If we see a stitched in ‘small print, on the menu, we leave and go elsewhere.
This is not America. Tips are EARNED not a right.

 

[Jarred Santos]

Maybe a sign or notice or even larger text about the gratuity would have been nice. It's one thing to freely give it as a sign of appreciation, and it's another to find out it was taken and in a sneaky manner

 

[Mrtnst]

I actually think a cakeage fee is fair, but $50 is excessive. Not only is the restaurant missing out on dessert sales, but the staff still have to serve it and clean up the crockery and cutlery used afterwards.

Handling out a few plates and forks, cutting a cake into a few pieces and then clearing the table and Loading the dishwasher.

Are you seriously considering that arduous tasks?

You also seem to be forgetting that the author of the original poster indicated that the overall level of service was not very high.

Restaurants are a in highly competitive service industry, dozens close down in Australia every day.

The smallest thing makes the difference between a successful business and no business at all.

Not only is a sneaky and greedy surcharge rude, it's incredibly dumb.

 

[IAN3005]

Who can afford to eat out in the first place?

 

[Suzanne rose]

Who can afford to eat out in the first place?

I'm lucky my eldest son always pay even when everyone else insist on paying he manages to pay first and our bill is always between $600 to $800.

 

[Mrtnst]

Who can afford to eat out in the first place?

Well, there are over 40 restaurants within a 30 minute drive of where I am sitting.

Which is an outer suburban area of a regional city with less than 2000 residents, according to the 2021 census.

So I would be guessing quite a few.

 

[Veggiepatch]

I always pay with the "eat and run" method....

 

[Littleboy8]

I always pay with the "eat and run" method....

 

[MariaG]

I don't know what it's like to eat at a restaurant that needs fine print. I guess with a big group, it is necessary to know what charges may be involved. One of the big ones can be corkage if it's a BYO, or a charge to cut up a birthday cake.
The only extras I strike is if we go for a meal on a public holiday or Sunday. Most places put a prominent sign up declaring the surcharge. I'm ok with that as staff deserve to be paid the penalty rates for working on those days.
I have left tips in jars on the counter after receiving good service. That's as far as I would go.