LPG Charges Collected From Customers by Hotels, Restaurants; CCPA Warns of Strict Action

The Central Consumer Protection Authority (CCPA) on Wednesday warned hotels and restaurants against levying additional charges such as LPG and fuel fees on customers. The authority said such practices are unacceptable and that strict action will be taken against violators.

The CCPA termed these charges as “unfair trade practices” under the Consumer Protection Act, 2019, and clarified that only applicable taxes can be added to the prices listed on the menu. According to an official statement, the authority has observed that several establishments are adding charges such as LPG fees, gas surcharges and fuel charges to customer bills.

The CCPA noted that these charges are being imposed in violation of existing guidelines related to service charges. It has issued an advisory under Section 10 of the Consumer Protection Act, 2019, directing that no such additional charges be levied arbitrarily. Strict action will be taken in case of violations.

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“Based on complaints received by the National Consumer Helpline and media reports, CCPA has found that some hotels and restaurants are adding such additional charges at their discretion, over and above the food prices listed on the menu and applicable taxes,” the statement said.

The authority clarified that costs such as fuel, LPG, electricity and other operational expenses are part of running a business and should already be factored into menu prices. Recovering these costs through separate mandatory charges amounts to an unfair trade practice under Section 2(47) of the Act. The CCPA added that the price displayed on the menu should be the final price, excluding applicable taxes, and customers should neither be misled nor compelled to pay any such additional charges.