Service Charges: Washington’s Service Businesses Must Disclose Employee Share [Oct. 2007]

By Amy H. Pannoni and J. Riley Lagesen

As of July 23, 2007, service-oriented businesses in Washington state, such as restaurants, bars, convention centers and hotels, must disclose to customers what portion of a “service charge” goes to the employee(s) serving the customer. This disclosure must be clearly printed on all itemized receipts and all menus. The law requires disclosure even if the service charge is not labeled as such. Service charges include all charges on receipts and menus, such as “service charge,” “gratuity,” “delivery charge,” or “porterage charge.”

The Facts about FACTA: the latest Consumer Class Action [Feb. 2007]

By Jennifer L. Brockett, Sam N. Dawood and Martin L. Fineman

Spring is in the air. Like bees to honey, plaintiffs' class action firms are drawn to a new law, easy to plead and potentially easy to prove. The Fair and Accurate Credit Transaction Act (FACTA), was enacted in 2003, but became fully-effective only in December 2006. FACTA is aimed at protecting consumer privacy and preventing identity theft, and includes several provisions to meet this goal.

Franchisors Face New World Under Amended Franchise Rule [Feb. 2007]

By Joanie Y. Kim and J. Riley Lagesen

On January 22, 2007, the Federal Trade Commission (FTC) approved final amendments to the Franchise Rule (the “Rule”). The FTC’s stated purpose in amending the Rule is to “streamline the Rule, minimize compliance costs, and to respond to changes in new technologies and market conditions in the offer and sale of franchises.” The amended Rule preempts inconsistent state law and will serve as the industry disclosure standard following the phase-in period. The amendments are effective July 1, 2007, but franchisors may use the original Rule (or UFOC Guidelines) until July 1, 2008.