City
Epaper

Service Charge By Restaurants Illegal, Says Govt

By Lokmat English Desk | Updated: June 2, 2022 20:26 IST

Open in App
1 / 8
The Ministry of Consumer Affairs on Thursday told restaurants not to levy 'service charge' on bills, dubbing the move 'illegal'.
2 / 8
The ministry said it will soon formulate a legal framework, that among other things, will prevent hospitality establishments from levying the charge. The move is being planned to protect the interests of consumers.
3 / 8
The Department of Consumer Affairs (DoCA) called the hospitality industry association Federation of Hotel & Restaurant Associations of India (FHRAI) for a meeting on Thursday to discuss the matter of service charge on restaurant bills.
4 / 8
FHRAI in a clarification earlier said service charge known colloquially as ’tip’ is the amount paid to the staff of the restaurant or other similar establishments by patrons.
5 / 8
'Service charge is considered a beneficial payment since it is meant for the benefit of the staff of the establishment. So, some establishments make a conscious choice to adopt a beneficial policy towards its staff members by assuring them a minimum tip which is a percentage of the rest of the charges. There is nothing illegal nor is it in violation of the law for restaurants to collect a service charge,” Gurbaxish Singh Kohli, Vice President, FHRAI had said in a statement earlier.
6 / 8
FHRAI’s joint honorary secretary Pradeep Shetty said that it is entirely a restaurant’s discretion whether to charge service charge or not. If a guest has any objection to paying the service charge, then, it can be removed from the bill.
7 / 8
Shetty added that it is a common practice by even other service providers that charge certain ‘convenience fee’ for providing services to customers.
8 / 8
Services like train and air ticket booking through websites or portals, food ordered via website or mobile apps, or movie tickets booked through online portals all levy a convenience fee on the customers.
Tags: Service Charge By Restaurants
Open in App

National Realted Stories

NationalUttar Pradesh: 10-Year-Old Injured in Ceiling Collapse at Gorakhpur School, (Watch Video)

NationalThe Third Eye: ‘Tailored’ Intelligence serves no purpose

NationalI was tortured for refusing to spread lies: Pragya Thakur on Malegaon blast case

NationalCM Stalin slams AIADMK for renewing ties with BJP, urges DMK cadre to uphold Karunanidhi’s legacy

NationalAnti-terrorist operation continues for 3rd day in J&K’s Kulgam