The Center will soon come out with a framework to stop the ‘service charge’ levied by restaurants.
Highlight
- Consumer Affairs Department will soon come up with a strong framework
- This is to ensure strict compliance by the stakeholders with respect to the service charges levied by the restaurant
- The department held a meeting with restaurant associations and consumer organizations on June 2 regarding this matter.
The Department of Consumer Affairs (DOCA) will soon come up with a robust framework to ensure strict compliance by stakeholders with regard to service charges levied by restaurants and hotels as it adversely affects consumers on a daily basis.
The department on Thursday (June 2) held a meeting with restaurant associations and consumer organizations on levying service charges in hotels and restaurants. Rohit Kumar Singh, Secretary, DOCA presided over the meeting.
An official release said that the meeting was attended by leading restaurant associations including National Restaurant Association of India (NRAI) and Federation of Hotel and Restaurant Association of India (FHRAI) and consumer organizations.
Discussion topics:
During the meeting, the major issues raised by the consumers regarding service charges on the National Consumer Helpline of DOCA were discussed. In addition, guidelines on fair trade practices relating to service charges were also mentioned.
Restaurant associations observed that when service charges are mentioned in the menu, it involves the implied consent of the consumer to pay the fee. The service fee is used by the restaurant/hotel to pay the staff and workers and is not charged for the experience or food served to the consumer.
Read also: Restaurants forcing customers to pay service charges, misleading them on legality: Govt.
The consumer organizations observed that the levy of service charges is completely arbitrary and constitutes an unfair as well as restrictive trade practice under the Consumer Protection Act.
Questioning the legality of such charges, it was highlighted that since there is no bar on restaurants/hotels to fix the prices of their meals, including additional charges in the name of service charges, it is the right of the consumers. detrimental to.
(with ANI inputs)
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