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Plaintiff alleges restaurant owner deceived diners with hidden fees

NORTHERN CALIFORNIA RECORD

Thursday, March 6, 2025

Plaintiff alleges restaurant owner deceived diners with hidden fees

State Court
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Superior Court of California - County of San Francisco | Official website

A California restaurant is facing serious allegations of deceptive pricing practices, potentially affecting countless customers. On February 18, 2025, Alexander Xue filed a complaint in the Superior Court of California, County of San Francisco, against Clove Hospitality LLC. The lawsuit accuses the defendant of engaging in unfair competition and false advertising by secretly adding undisclosed fees to customer bills.

The plaintiff, Alexander Xue, visited Tiya, an Indian restaurant operated by Clove Hospitality LLC at 3213 Scott St., San Francisco, on December 21, 2024. During his visit, Xue was presented with menus listing food and beverage items along with their prices. Relying on these prices as accurate representations of what he would pay, Xue ordered dinner and drinks. However, upon receiving his receipt after paying the bill, he noticed an unexpected charge labeled "SF Mandate," amounting to $7.35 or 5% of his pre-tax subtotal. This fee was not disclosed on the menu nor explained at any point during his dining experience.

Xue argues that this practice constitutes a violation of several California laws designed to protect consumers from misleading business practices. Specifically cited are violations under the Business and Professions Code §§ 17200 et seq., which prohibits unlawful business acts; §§ 17500 et seq., which addresses false advertising; and the Consumer Legal Remedies Act (CLRA), which outlaws deceptive trade practices. According to Xue's complaint, Clove Hospitality LLC failed to disclose mandatory surcharges effectively altering product prices and misled customers into believing they were paying less than they actually were.

In his legal filing, Xue highlights that while certain exceptions exist for restaurants regarding fee disclosures under California law—provided such fees are clearly displayed—Clove Hospitality LLC did not meet these requirements. As a result, they are not entitled to statutory exemptions typically afforded to compliant businesses.

The plaintiff seeks multiple forms of relief from the court: an injunction preventing further unlawful charges without proper disclosure; refunds for all customers who paid hidden fees; reimbursement for legal costs incurred during this suit; and any additional remedies deemed appropriate by the court.

Representing himself pro se in this matter is Alexander Xue. The case has been assigned Case ID CGC-25-622514 in front of judges at the Superior Court of California located within San Francisco County.

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