Fri. Mar 29th, 2024
No hotels, restaurants can add service charge in the food bill, Consumer Affairs Ministry issues guidelines

The Central Consumer Protection Authority (CCPA) has issued guidelines to prevent unfair trade practices and violation of consumer rights with regard to levying of service charge in hotels and restaurants.

The guidelines issued by CCPA lays down that hotels and restaurants shall not add service charge by default in the food bill. No collection of service charge shall be done by any other name. No hotel or restaurant shall force a consumer to pay service charge and shall clearly inform the consumer that service charge is voluntary, optional and at consumer’s discretion. No restriction on entry or provision of services based on collection of service charge shall be imposed on consumers. Service charge shall not be collected by adding it along with the food bill and levying Goods and Services Tax (GST) on the total amount. 

The guidelines further says, If a consumer finds that a hotel or restaurant is levying service charge in violation to the guidelines, she or he may make a request to the concerned hotel or restaurant to remove service charge from the bill amount.

Also, the consumer has the option to lodge a complaint on the National Consumer Helpline (NCH). It works as an alternate dispute redressal mechanism at the pre-litigation level by calling 1915. It can be done through the NCH mobile app as well.

The consumer may also file a complaint against unfair trade practice with the Consumer Commission. The Complaint can also be filed electronically through e-daakhil portal www.e-daakhil.nic.in for its speedy and effective redressal. 

Furthermore, the consumer may submit a complaint to the District Collector of the concerned district for investigation and subsequent proceedings by the CCPA. The complaint may also be sent to the CCPA by e-mail at [email protected].

NCH have registered a number of complaints from consumers with regard to levying of service charge. The issues raised by consumers include restaurants making service charge compulsory and adding it in the bill by default. Contrary to the fact, it suppresses that paying such a charge is optional and voluntary and embarrassing consumers in case they resist paying service charge.

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