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FTC Rulemaking on Pricing
On October 11, the Federal Trade Commission (FTC) released a proposed rule on price transparency that could have major implications for restaurants.
What does this mean for restaurants? The proposed rule would:
- Require menu prices to be inclusive of all mandatory fees including service charges and swipe fees, and
- Require third-party delivery apps to list an all-in transaction cost (including delivery, service, and other fees), during menu section.
What’s our take? We do not believe the FTC has the authority to tell restaurants how to price and market their services. As long as fees are transparency, restaurants should have the ability to structure their prices in the way that works best for their business. Furthermore, requiring all-in pricing can actually be very confusing for consumers, for example in a third-party delivery situation where it may look as if a restaurant has raised their prices when really a consumer is paying higher third-party delivery fees.
Statement by National: “This proposed rule appears to be a scattershot plan that both attacks the restaurant business model and forces us to raise our prices. Small business restaurant owners create the economic engines of their local economies, which is why it is disappointing that this proposed rule appears to be a one-size-fits-all rule for businesses big and small. We’re still closely reviewing what the FTC has included about restaurants and analyzing the ways in which their proposal will fundamentally change the way restaurants do business so that we can provide appropriate comments on what we expect will be far-reaching impacts.”--Sean Kennedy, Executive Vice President of Public Affairs, National Restaurant Association
What’s next? Comments will be due around December 18 (60 days after the rule is published in the federal register). We will be working with our National colleagues on our industry’s comments. Then we anticipate a final rule will be issued in late 2024, with implementation and potential legal challenges occurring in 2025.
2022 EEO-1 Component 1 Data Collection Opening on October 31, 2023
The EEO-1 Component 1 report is a mandatory annual data collection that requires all private sector employers with 100 or more employees, and federal contractors with 50 or more employees meeting certain criteria, to submit workforce demographic data, including data by job category and sex and race or ethnicity, to the EEOC.
The 2022 EEO-1 Component 1 data collection will open on Tuesday, October 31, 2023. The EEO-1 online Filer Support Message Center (i.e., filer help desk) will also be available beginning Tuesday, October 31, 2023, to assist filers with any questions they may have regarding the 2022 collection.All updates about the 2022 EEO-1 Component 1 data collection, including supplementary resource materials, will be posted to www.eeocdata.org/eeo1 as they become available.
NLRB Expected to Release New Definition of Joint Employer Soon
In the coming weeks, the National Labor Relations Board (NLRB) is expected to finalize a new definition of what constitutes a “joint employer,” changing the standard for when one business can be liable for another's labor practices. When announced, the new final rule will be effective immediately.
What does this mean for restaurants? We’re concerned the rule will increase legal liability unnecessarily, especially for franchisor/franchisee restaurants and restaurant service providers.
What’s our take? Along with our National partners, we’re prepared to explore every avenue to challenge the new rule. In addition, we’re supporting federal legislation that would adopt the commonsense joint employer standard into law: the Save Local Business Act, S.1261/H.R. 2826.
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