The Central Consumer Protection Authority or CCPA on Monday issued an order barring hotels and restaurants from connecting service tax automatically or by default in the food bill. The apex consumer authority on that day issued guidelines regarding prevention of unfair trade practices and violation of consumer rights. service charge in hotels and restaurant.
“The Central Consumer Protection Authority (CCPA) has issued guidelines to prevent unfair trade practices and violation of consumer rights with respect to levy of service charges in hotels and restaurants,” the Consumer Affairs Ministry said in a statement on Monday.
What are the CCPA Guidelines on Restaurant Service Charges?
As per CCPA guidelines, hotels or restaurants will not automatically or by default add service charges to the food bill.
Service charges will not be recovered under any other name. No hotel or restaurant shall compel any consumer to pay a service fee and shall expressly inform the consumer that the service charge is voluntary, optional and at the discretion of the consumer.
– No restriction shall be imposed on the consumers on the entry or provision of services on the basis of collection of service charges.
Service charge will not be levied by adding it to the food bill and levying GST on the total amount.
Customer can register complaint online
The CCPA has also issued guidelines for filing a complaint if a customer comes to know that a service charge has been levied on him in a hotel or restaurant.
If a consumer finds that a hotel or restaurant is levying a service charge in violation of the guidelines, the consumer can request the concerned hotel or restaurant to deduct the service charge from the bill amount. In addition, the consumer can lodge a complaint on the National Consumer Helpline (NCH), which acts as an alternative dispute redressal mechanism at the pre-litigation level, by calling 1915 or through the NCH Mobile App.
The consumer can also file a complaint with the consumer commission against unfair trade practice. The complaint can also be lodged electronically through the e-filing portal www.e-daakhil.nic.in for quick and effective redressal. In addition, the consumer can submit a complaint to the District Collector of the district concerned for investigation and subsequent action by the CCPA. The complaint can also be sent to CCPA by e-mail at com-ccpa@nic.in.
Issue raised by many customers
“Several complaints have been filed by consumers with the National Consumer Helpline (NCH) regarding levy of service charges. The issues raised by the consumers include making restaurant service charges mandatory and adding it to the bill in default, making payment of such charges optional and voluntary and embarrassing to consumers,” the CCPA said on Monday.
It said that various matters relating to levy of service charges, which have been decided in favor of consumers by consumer commissions, are considered as an unfair trade practice and as a violation of consumer rights.
The decision comes a month after the meeting
This comes a month after the government held a meeting with representatives of restaurant associations as well as consumers, following complaints over service charges levied by eateries. In the meeting, consumer affairs secretary Rohit Kumar Singh reportedly said that even though restaurant associations claim that the practice is legal, the consumer affairs department feels that levying service charges adversely affects the rights of consumers and This is an “unfair trade practice”.
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