In a significant legal development, a class action lawsuit has been filed against a popular food chain for allegedly misleading customers with an undisclosed surcharge. Jonathan Rubin, the plaintiff, lodged the complaint in the Superior Court of California, County of San Francisco on March 21, 2025, targeting ProperFood, LLC. The lawsuit accuses the company of violating consumer protection laws by imposing a 5% surcharge on purchases without proper disclosure.
The complaint alleges that ProperFood, LLC has been charging its customers an additional fee labeled as "SF Employer Fee" since at least March 2021. This fee is purportedly meant to cover healthcare expenditures for employees under the San Francisco Health Care Security Ordinance. However, Jonathan Rubin argues that there is no legal requirement for businesses to impose such a surcharge on consumers. The lawsuit claims that this practice violates California's Consumer Legal Remedies Act and Business and Professions Code because the surcharge is not clearly disclosed to customers prior to purchase. Instead, it appears only on receipts or in small print at the bottom of menus and online advertisements.
Jonathan Rubin recounts his experience from January 16, 2025, when he purchased a meal from ProperFood's San Francisco location and was surprised by an additional charge on his receipt. He asserts that this lack of transparency misleads consumers into believing they are paying mandatory fees rather than optional charges designed to increase profits. The plaintiff contends that these actions have resulted in customers overpaying for their meals by 5%, thereby enriching ProperFood unjustly.
Rubin seeks several forms of relief from the court: actual damages for himself and other affected consumers; restitution of all surcharges collected; disgorgement of profits gained through these practices; injunctive relief to prevent further violations; and coverage of attorney fees and litigation costs. The case underscores broader concerns about business transparency and consumer rights in California's competitive market landscape.
Representing Jonathan Rubin are attorneys Nicholas A. Carlin and Nina C. Pouget from Phillips, Erlewine, Given & Carlin LLP. The case has been assigned Case No. CGC-25-623522 in front of the Superior Court of California in San Francisco County.