Some of the biggest names in fine dining are being sued over their conversion to a no-tipping policy in their restaurants.
The restaurateurs named in the lawsuit, filed by a diner who claims to have been overcharged, include Danny Meyer of the Union Square Hospitality Group, Tom Colicchio founder of Craft Hospitality, David Chang of Momofuku and others, Law360 first reported.
The suit is seeking class-action status. The lawsuit argues that Meyer spearheaded a price-fixing “conspiracy” that lead to Bay Area chefs meeting in 2014 and joining his movement to steal tips from their employees and enrich themselves while overcharging diners in the process.
This collusion, say the plaintiffs, is a violation of antitrust laws, the Federal Sherman Act, the California Cartwright Act, and the New York Donnelly Act. They also say that it doesn’t matter if the defendants had no idea that they were violating the laws, or what their motives were because there is a “conclusive presumption that [horizontal price fixing] is unreasonable.”
Full Content: Business Insider
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