NYC restaurants sued over tipping practice

Discussion in 'General Discussion | Dining' started by sobore, Jul 19, 2013.  |  Print Topic

  1. sobore
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    sobore Gold Member

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    Several New York City restaurants including Applebee’s, Olive Garden and Red Lobster, are being named in a lawsuit over alleged deceptive billing practices, "CBS This Morning" reports.
    The network posted images of an Olive Garden check with a line for an “automatic gratuity” of 18 percent added to the price of a meal, as well as a place to add an additional tip, regardless of the number of diners. An Applebee's check added a 17 percent automatic gratuity, saying it was "payable at guest's discretion."

    “They want to squeeze that extra little dollar that they can out of everybody,” Evan Spencer, the lawyer who brought the $5.5 billion class action lawsuit, told CBS, adding, “A tip and a gratuity are exactly the same thing,”

    New York City law says restaurants may not add surcharges to listed prices except for groups of eight or more.

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  2. uggboy
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    uggboy Gold Member

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    Glad someone cleans up. :)
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  3. legalalien
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    legalalien Gold Member

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    Let me guess...the outcome will be:

    1. Restaurants will settle for the limit of their insurance, without admitting to anything.
    2. Plaintiff's law firm will get a large huge paycheck of fees + expenses; representative members of the "class" will get $50k or so each.
    3. Other members of the "class" will receive gift cards worth $10 (with $100 purchase), so (approx. number of members in the class x $10) + the amount in no. 2 = settlement amount in no. 1.
    4. Price of entrees will go up to pay for the above.

    Sounds like an all-around win for consumers; all because some are too lazy to check whether gratuity is already included.

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