The Central Consumer Protection Authority (CCPA) has issued guidelines aimed at preventing unfair trade practices of restaurants and protecting the interests of consumers when it comes to the levy of service charges. The authority has also issued guidelines about the same. The ministry noted that if a consumer finds that a restaurant or hotel is charging a service charge that is in violation of the guidelines, then they can ask the establishment to remove the charge from the invoice. In case the restaurant refuses to do so, the consumer can file a complaint against the establishment through the NCH mobile app or by calling 1915.
What do the CCPA’s guidelines on service charges say?
The CCPA was established in July 2020 under The Consumer Protection Act, 2019, to protect, promote and enforce the rights of consumers as a class, and to investigate and punish violators.
The authoritative body has issued a set of guidelines aimed at preventing restaurants and hotels from charging service charges. This issue has been a subject of complaints from consumers. The guidelines state.
(i) No hotel or restaurant shall add service charge automatically or by default in the bill;
(ii) Service charge shall not be collected from consumers by any other name;
(iii) No hotel or restaurant shall force a consumer to pay the service charge and shall clearly inform the consumer that the service charge is voluntary, optional, and at the consumer’s discretion
(iv) No restriction on entry or provision of services based on the collection of service charge shall be imposed on consumers; and
(v) Service charge shall not be collected by adding it along with the food bill and levying GST on the total amount.
What can a consumer do in case of a violation of these guidelines?
If a consumer finds that a restaurant or hotel is charging a service charge that is in violation of the guidelines, then he/she can ask the establishment to remove the charge from her bill. He/She can also make a request to the management to remove the charge from her bill.
If the restaurant refuses to cancel the service charge, then she can file a complaint with the National Consumer Helpline, which is an alternative dispute resolution mechanism. The complaint can be lodged by calling 1915 or using the NCH mobile app.
Third, the consumer can complain to the Consumer Commission, or through the edaakhil portal, http://www.edaakhil.nic.in.
Fourth, he/she can also file a complaint with the District Collector of the area for investigation and proceedings with CCPA. The complainant can also send an e-mail to the CCPA at to com-ccpa@nic.in.