Bill Sponsors
Fellela, Shallcross Smith, Messier, and Costantino
Committee
House Corporations
Summary
Select
This legislation requires businesses in Rhode Island to be transparent about credit card surcharges. Starting January 1, 2027, any business that charges an extra fee for using a credit card must post a clear and noticeable sign at the point of sale informing customers of the fee and its amount or percentage. Additionally, restaurants and food service establishments must print this information on their menus. Failure to provide these notices will be legally considered an unfair or deceptive trade practice.
Sponsor
Analysis
Pros for Progressives
- Increases transparency for consumers, ensuring that working-class individuals and families are not hit with hidden fees at the checkout counter.
- Protects vulnerable populations from deceptive business practices by classifying the failure to notify as an unfair trade practice punishable by law.
- Empowers customers to make informed purchasing decisions, preventing businesses from extracting extra profit through obscured surcharges on essential goods and services.
Cons for Progressives
- Does not actually prohibit the passing of credit card processing fees onto consumers, allowing businesses to continue shifting corporate costs to the working class.
- The implementation date is delayed until 2027, allowing businesses to continue hitting customers with surprise fees for several more years without consequence.
- Relies on a reactive enforcement model regarding "unfair trade practices" rather than establishing proactive inspections to ensure businesses are complying with consumer protection standards.
Pros for Conservatives
- Promotes free market principles by ensuring price transparency, allowing consumers to choose where to spend their money based on full and accurate information.
- Does not ban businesses from recovering credit card processing costs, preserving the fundamental right of business owners to manage their overhead expenses as they see fit.
- Clarifies the rules of commerce, preventing fraud and ensuring that purchase contracts are entered into with full disclosure of terms by both parties.
Cons for Conservatives
- Imposes new regulatory burdens on small business owners, dictating exactly how they must format menus and signage within their own private establishments.
- Creates a path for government lawyers to target businesses for "unfair trade practices" over minor signage errors or menu printing oversights.
- Represents government overreach into private transactions, micromanaging the communication between a merchant and their customer.
Constitutional Concerns
None Likely
Impact Overview
Groups Affected
- Consumers
- Restaurant Owners
- Retail Business Owners
- Credit Card Users
- Service Industry Workers
Towns Affected
All
Cost to Taxpayers
None
Revenue Generated
None
BillBuddy Impact Ratings
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Environmental Impact
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Privacy Impact
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Bill Status
Current Status
Held
Comm Passed
Floor Passed
Law
History
• 01/09/2026 Introduced, referred to House Corporations
Bill Text
SECTION 1. Chapter 6-13 of the General Laws entitled "Unfair Sales Practices" is hereby amended by adding thereto the following section:
6-13-22. Notice required for credit card surcharges.
(a) Effective January 1, 2027, any business that imposes a surcharge or fee for payments made by credit card shall provide clear and conspicuous notice of the surcharge to customers.
(b) The notice required pursuant to this section shall be posted in a conspicuous location at the point of sale or payment.
(c) For restaurants or food service establishments, the notice shall also be clearly displayed on all menus provided to customers.
(d) The notice shall include all of the following:
(1) A statement that a surcharge is imposed on credit card payments; and
(2) The amount or percentage of the surcharge.
(e) Failure to provide the required notice shall be considered an unfair or deceptive trade practice and subject to enforcement under this chapter.
SECTION 2. This act shall take effect upon passage.
6-13-22. Notice required for credit card surcharges.
(a) Effective January 1, 2027, any business that imposes a surcharge or fee for payments made by credit card shall provide clear and conspicuous notice of the surcharge to customers.
(b) The notice required pursuant to this section shall be posted in a conspicuous location at the point of sale or payment.
(c) For restaurants or food service establishments, the notice shall also be clearly displayed on all menus provided to customers.
(d) The notice shall include all of the following:
(1) A statement that a surcharge is imposed on credit card payments; and
(2) The amount or percentage of the surcharge.
(e) Failure to provide the required notice shall be considered an unfair or deceptive trade practice and subject to enforcement under this chapter.
SECTION 2. This act shall take effect upon passage.