Forced to pay service charges? Govt asks officials to submit report on complaints within 15 days

The Central Consumer Protection Authority (CCPA) has asked all district collectors to ensure enforcement of the guidelines issued in this regard. service tax levied on customers by hotels and restaurants. CCPA In a letter to the district collectors, they have been asked to act on the complaints received under the latest guidelines and submit their findings to the authority within 15 days.

“CCPA has written to Chief Secretaries and District Collectors of all States/UTs India “To make arrangements for its immediate implementation as well as wide publicity of the guidelines for the protection of consumer interests,” the consumer affairs ministry said in a press release on Saturday. It said that on receipt of related complaints, the District Collector can investigate the violation of the guidelines and submit the report to the authority within 15 days.

Many consumers have registered their complaints on the National Consumer Helpline regarding levy of service charges. From April 1, 2021 to June 20, 2022, 537 complaints were filed by consumers for charging service charges. The major complaints included making service charges mandatory in hotels/restaurants, shaming consumers when they opted to pay service charges, adding service charges by any other name and asking consumers to pay service charges, the press release said. The payment is optional and voluntary, the press release said.

Since the implementation of the new guidelines, as of July 8, 85 complaints have been filed with the National Consumer Helpline to the CCPA. “The top 5 cities for service charge complaints are New Delhi, Bangalore, Mumbai, Pune and Ghaziabad with 18, 15, 11, 4 and 3 complaints respectively,” the CCPA said.

CCPA Chief Commissioner Nidhi Khare has clarified that the guidelines are not advisory in nature and are fully enforceable by law. The guidelines have been issued under Section 18(2)(l) of the Consumer Protection Act, 2019, which empowers the CCPA to issue necessary guidelines to prevent unfair trade practices and protect the interests of consumers.

Last Monday, the CCPA issued an order barring hotels and restaurants from adding service charges to food bills automatically or by default. As per CCPA guidelines, hotels or restaurants will not add service charges to the food bill automatically or by default.

The difference between the new guidelines issued by the CCPA and the previous guidelines by the Department of Consumer Affairs is that, in the intervening period, the erstwhile Consumer Protection Act, 1986 was replaced by the Consumer Protection Act 2019, which came into force in July 2020. It created a new statutory body i.e. Central Consumer Protection Authority, which has been empowered by the Parliament to take cognizance of unfair trade practices. Therefore, any violation of the guidelines will be taken seriously and appropriate action will be taken against unfair trade practices and violation of the rights of consumers.

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