Consumer protection tipping crackdown
by Leon Gettler
Here’s a tip for restaurants – don’t load a tip without the customer’s consent.
Failure to do that can get you in trouble, as the folks at high profile Perth restaurant Jamie’s Italian found out.
Consumer Protection officers descended on the restaurant this week to investigate a $100 tip added to a bill, apparently without a customer’s consent.
Conditions on the menu specifically state that parties of 12 or more would be automatically charged a gratuity of eight per cent.
That means a bill of $600 has a hefty tip of $48.
Consumer Protection officers were called in when diners were told the tip had been added without their knowledge, before they had even had a chance to press OK on the EFTPOS.
Consumer Protection officials told Fairfax Media that they paid a visit to remind staff and managemetn of their responsibilities to customers.
To put it simply, the bill is the bill, not the bill plus a tip.
"It was a routine call to ensure management and staff understood what they can and can't do with regard to billing," a spokeswoman told Fairfax Media.
“There is no obligation to pay a tip,"
"If you want to pay by cash then that fee ought not to be on the bill and you need to ask for that to be removed."
Consumer Protection says it now wants to hear from any diners who have come across this situation. If a restaurant tells them it’s standard practice, then Consumer Protection wants to hear about it.
"And a restaurant can't just suggest you convert that fee into a tip," the spokeswoman said.
Steve Taylor, general manager of Jamie's Italian Perth confirmed the visit and admitted there had been a mistake.
"Our policy is always to ask customers first whether they want pay their bill by cash or card," he told Fairfax Media.
"On this occasion, it appears that might not have happened and a merchant fee was included - and we apologise for that."
However, he confirmed there was a policy of an eight per cent gratuity for tables of 12 or more.
But he said tipping was optional.
2nd March 2016
