What is the Illinois hidden fee law, and what is the fine?
Quick answer
From January 1, 2027, any price an Illinois business advertises, displays or offers must include every mandatory fee (815 ILCS 505/2MMMM, Public Act 104-0472). Government taxes and real shipping costs can be added. Restaurants must show any automatic tip percentage. The Attorney General can seek a civil penalty of up to $50,000, or $50,000 per violation with intent to defraud.
Not legal advice.
Key facts and official sources
| Item | What the law says | Source |
|---|---|---|
| Law | 815 ILCS 505/2MMMM, added by Public Act 104-0472 (HB 228) | Official source |
| Effective | January 1, 2027 | Official source |
| Rule | Any advertised, displayed or offered price must include every mandatory fee or surcharge; government taxes/fees and actual reasonable shipping may be added | Official source |
| Auto-gratuity | Restaurants, bars and hotels may charge it only if every offer or ad with pricing clearly discloses the percentage (§2MMMM(h)); gratuities must go entirely to employees | Official source |
| Penalty | AG or State's Attorney may seek up to $50,000, or up to $50,000 per violation if intent to defraud, plus up to $10,000 per violation against a person 65+ | Official source |
What to do now
- List every fee you charge today (service, convenience, booking, cleaning, "operations", card fees that are mandatory).
- Fold each mandatory fee into the price shown on menus, websites, apps, quotes and ads.
- If you keep an automatic gratuity, show its percentage in every priced offer and make sure it goes entirely to the staff providing the service.
- Keep a dated record of the changes in case a regulator or customer asks.
Want it done in an afternoon? The Illinois hidden fees (all-in price) kit turns these steps into fill-in templates, a checklist and a tracker, with the official sources quoted. One-time payment, instant download.
FAQ
Does the Illinois junk fee law apply to restaurants?
Yes. A restaurant, bar or hotel that adds an automatic gratuity must show its percentage in every offer or ad that shows a price. Every other mandatory fee, such as a service or kitchen fee, has to be inside the menu price (815 ILCS 505/2MMMM(h)).
Is there an extra fine for overcharging older customers?
Yes. A court can add up to $10,000 per violation when the violation was committed against a person 65 or older (815 ILCS 505/7(c)).
When does the Illinois hidden fee law take effect?
January 1, 2027. The Public Act 104-0472 page and the HB 228 bill status both list that effective date.
Can Illinois restaurants still add a service charge?
Every mandatory fee must be inside the advertised price, except an automatic gratuity whose percentage is clearly disclosed in every offer or ad that shows a price (815 ILCS 505/2MMMM(h)). The law defines gratuities as money that goes entirely to the employees who provide the service.
Can I still add sales tax at checkout?
Yes. Taxes and fees that a government requires you to collect, and reasonable shipping costs you actually incur, can be added on top of the advertised price.
What are the penalties?
A violation is an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act. The Attorney General or a State's Attorney can ask a court for a civil penalty of up to $50,000, or up to $50,000 per violation if the court finds intent to defraud, plus up to $10,000 more per violation against a person aged 65 or older (815 ILCS 505/7).
Is this legal advice?
No. This is general information based on the published law text. For advice on your business, ask a licensed Illinois attorney.
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