Source: Greater Iowa Better Business Bureau
Source: Greater Iowa Better Business Bureau
Greater Iowa Better Business Bureau recently issued the following announcement.
Consumers are contacting the BBB expressing concerns and sometimes surprised as they are finding a surcharge on their bills at restaurants, dentist offices, and other types of businesses.
As some businesses attempt to recoup some of their costs for outfitting their offices and employees with costly PPE during the reopening, it's possible that you could see it on your next bill or receipt. Customers have been questioning if the practice is legal.
Steve Bernas, president and CEO of the BBB of Chicago and Northern Illinois says “After checking with some of our key partners, the answer is most likely is yes as long as the price increases are reasonable and as long as it's properly disclosed and doesn't come off as a tax. Businesses do run a risk, even with small fees or losing customers ”
Creditcards.com reports they are often seeing the surcharges on customer bills since the pandemic hit, from businesses with employees in direct contact with customers.
Full Statement from the City of Chicago:
A reasonable increase in prices due to COVID-19 can be acceptable. However, failure to disclose a price increase prior to purchase, or claiming that a charge added by the business is a tax, could be considered deceptive practices and would not be legal.
Full statement from the Illinois Attorney General's Office:
Generally, if a surcharge is added due to increased costs, the business is clear and accurate about the surcharge- i.e. not labeling it as a tax and ensuring it accurately reflects any increased costs- and clearly discloses the surcharge before the transaction, then it would be okay.
Bernas adds, “While reasonable surcharges are legal, we still emphasize price gouging, a problem during the pandemic, is still illegal, and if anyone feels the charges are excessive or unreasonable we ask them to contact the BBB Scamtracker.
Original source: https://www.bbb.org/article/news-releases/22838-chicago-area-consumers-surprised-by-covid-19-surcharges
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