Hotels or restaurants shall not add service charges automatically to the food bill - CCPA

The Central Consumer Protection Authority (CCPA) issued guidelines specifying that hotels or restaurants should not add service charges automatically to food bills.

The guidelines are as follows:

• Hotels or restaurants shall not add service charges automatically to the food bill;

• the service charge shall not be collected by any other name;

• hotel or restaurant shall not force a consumer to pay a service charge and shall inform the customers that the service charge is voluntary and at the consumer’s discretion;

• The service charge shall not be added along with the food bill and levying GST on the total amount.

The Ministry of Consumer Affairs, Food & Public Distribution issued a press release on the Press Information Bureau website stating that several complaints have been filed in the NCH by consumers regarding the levy of service charges.

It suggested that in case a hotel or restaurant levies service charges against the guidelines, the concerned consumer can request the hotel or restaurant to remove the service charge. The consumer can also lodge complaints by calling 1915 or through the NCH mobile app. This helpline works as an alternate dispute redressal instrument at the pre-litigation level. 

Further, for unfair trade practices, Consumers can file complaints with the Consumer Commission or through the e-daakhil portal www.e-daakhil.nic.in.