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US: NY class action claims restaurants colluding to raise bills with tips

By  |  July 1, 2013
US: NY class action claims restaurants colluding to raise bills with tips

A lawsuit filed in New York City accuses several restaurants of colluding to raise prices on customers’ bills by adding tips to receipts. Reports say Ted Dimond filed the suit against restaurants including Olive Garden, Red Lobster, Ruby Tuesday and Applebees’s in specific New York City locations, accusing the businesses of violating antitrust law; class action status and treble damages are being sought in the case. Spencer’s lawyer issued a statement declaring that the firms named in the case “are only the tip of the iceberg” of what he describes as widespread collusion to deceptively increase prices. New York City statute says restaurants can include tip on receipts for parties of eight or more.

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    Full Content: ABA Journal

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