Consumer Protection - Automatic Tip Prompt Screen - Requirements

HB 385 requires businesses in Maryland using digital point-of-sale systems that automatically prompt customers to leave a tip to: (1) clearly disclose who receives the tip (e.g., employees or the business), and (2) set the default tip amount to $0. This applies to restaurants, bars, and similar service businesses processing card payments. Violating these requirements would be considered an unfair, deceptive, or abusive trade practice under Maryland law, subject to enforcement by the Division of Consumer Protection. The law takes effect October 1, 2025, with the new requirements applying starting January 1, 2026.