Big Relief to Consumers, hotels & restaurants can no longer levy service charge in the food bill
By Lokmat English Desk | Published: July 5, 2022 01:53 PM2022-07-05T13:53:46+5:302022-07-05T13:53:46+5:30
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The Central Consumer Protection Authority (CCPA) has issued guidelines here on Monday preventing hotels and restaurants from levying service charge on customers.
Hotels or restaurants should not add service charge automatically or by default in the food bill, according to the guidelines.
The guidelines, issued by Nidhi Khare, Chief Commissioner, CCPA, adds that if any consumer finds that a hotel or restaurant is violating the guidelines, he or she may make a request to remove the service charge from the bill amount or lodge a complaint on the National Consumer Helpline (NCH).
Complaints can be filed with the Consumer Commission too or with the District Collector.
“No hotel or restaurant shall force a consumer to pay service charge and shall clearly inform the consumer that service charge is voluntary, optional and at consumer’s discretion.
No restriction on entry or provision of services based on collection of service charge shall be imposed on consumers. Service charge shall not be collected by adding it along with the food bill and levying GST on the total amount,” the Consumer Affairs Ministry said in an official release.
The Ministry said the National Consumer Helpline (NCH) has received a number of complaints by consumers against levying of service charge.
The guidelines added that component of service is inherent in price of food and beverages offered by the restaurant or hotel. “Pricing of the product thus covers both the goods and services component.