Hotels, restaurants barred from levying service charge by default

The Central Consumer Protection Authority (CCPA) on Monday (4 July 2022) barred hotels and restaurants from levying service charge automatically or by default in food bills and allowed customers to file complaints in case of violation.

The guidelines issued by CCPA stipulate that hotels or restaurant shall not add service charge automatically or by default in the food bill. No collection of service charge shall be done by any other name. 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.

The guidelines further mentioned that no restriction on entry or provision of services based on a collection of service charge will be imposed on consumers. The service charge will not be collected by adding it along with the food bill and levying GST on the total amount.

The Ministry of Consumer Affairs, Food & Public Distribution said that the consumer may lodge a complaint against the violator hotel or restaurants on the National Consumer Helpline (NCH) by calling 1915 or through the NCH mobile app.

The Ministry highlighted that the consumer may also file a complaint against unfair trade practice with the Consumer Commission through e-daakhil portal www.e-daakhil.nic.in for its speedy redressal.

Furthermore, the consumer may submit a complaint to the District Collector of the concerned district for investigation and subsequent proceeding by the CCPA. The complaint may also be sent to the CCPA by e-mail at com-ccpa@nic.in.

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