Restaurants obliged to inform clients of service charge beforehand

Restaurants are obliged to inform clients of any service charge before they even place their order, the Malta Competition and Consumer Affairs Authority said. 

“Consumers should be clearly informed of any applicable service charge before placing their order, so that they are aware of the total charges that may apply and can make an informed decision,” an MCCA spokesperson told MaltaToday.  

Charges billed as discretionary or optional don’t get a pass either; those need to be disclosed too, the spokesperson said. Slipping a charge in without warning “may raise concerns under the provisions relating to unfair commercial practices”. 

The issue was prompted by former Labour minister Roderick Galdes, who posted a receipt to Facebook showing a €6.92 service charge quietly added to a €72.80 subtotal, pushing the final bill to €79.72. 

With no warning, no line on the menu, and no sign until the total landed on the table, Galdes called it the “coperto” system.  

This system is a fixed, per-person cover charge long common in Italian restaurants, traditionally meant to cover the cost of setting a table—cutlery, glasses, napkins, sometimes bread. He warned it was creeping into Malta’s restaurant scene “little by little”. 

It’s a principle with legal teeth behind it. Under the Consumer Affairs Act (Chapter 378), MCCAA's Enforcement Directorate is tasked with ensuring that prices are communicated clearly and unambiguously to consumers, including by displaying price lists. 

More specifically, Regulation 24 of Malta’s Consumer Rights Regulations states: “Before the consumer is bound by the contract or offer, the trader shall seek the express consent of the consumer to any extra payment in addition to the remuneration agreed upon for the main contractual obligation of the trader.” 

Where that consent hasn’t been obtained—including where it’s simply assumed by default, which the consumer would have to actively reject—the law is clear on the consequence: “The consumer shall be entitled to reimbursement of this payment.” 

In practice, that means a service charge sprung on a customer only when the bill arrives, with no mention beforehand and no chance to agree to it, sits on shaky legal ground. 

The thought of this system creeping into Malta’s restaurants has raised concern with the MCCAA confirming that it has received a “small number of requests for information” from consumers. 

Earlier this week, the Association for Consumer Rights Malta (ACR) called on the authorities to actively monitor the trend. It said restaurants should disclose any service charge on menus, online booking platforms, and advertising.