H 7022Consumer Protection

Commercial Law - General Regulatory Provisions - Unfair Sales Practices

Businesses charging credit card fees must post clear notices of the cost at registers and on menus by 2027.

Held for study

Population
Affected

Introduced Jan 9, 2026Committee House Corporations

Plain-English Summary

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.

For younger readers

Sometimes when you buy something at a store or a restaurant, the owner has to pay a small fee to the credit card company if you pay with a card. Some stores ask customers to pay that fee. This new rule says that if a store wants you to pay that extra money, they have to put up a sign telling you about it before you pay. Restaurants have to put it on the menu, too. This way, there are no surprises when you get the bill. This rule starts in the year 2027.

Who & Where It Applies

Impacted groups

ConsumersRestaurant OwnersRetail Business OwnersCredit Card UsersService Industry Workers

Impacted communities

All

Constitutional & Fiscal Check

None Likely

Estimated cost

None

Estimated revenue

None

Bill Analysis

Both viewpoints

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.
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.

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.
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.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 12 additions

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.