Restaurant no-show fees to be increased to maximum 40% from 10%: FTC

A cancellation fee for failing to show up for a restaurant reservation is expected to be significantly increased later this year, the antitrust watchdog said Wednesday. Under a revised law currently pending administrative notice, no-show fees for missing a reservation without notice will be raised from the current 10 percent of the total bill to a maximum 20 percent, according to the Fair Trade Commission (FTC). In addition, restaurants that require advance reservations to prepare ingredients, such as omakase and fine dining establishments, will be allowed to impose a cancellation fee of up to 40 percent, the FTC said. Restaurants that are not classified as reservation-based establishments will also be allowed to charge up to 40 percent in cancellation fees for large orders, if the terms are clearly disclosed to customers in advance. "The current 10 percent cap on cancellation fees is too low, which has led to some abusive consumers deliberately making and missing reservations repeatedly," an FTC official said. The revised regulations are expected to go into effect by the end of the year,Weiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times