RESTAURANTS CANNOT IMPOSE SERVICE CHARGES ON CONSUMERS

The Kolkata Consumer Disputes Redressal Commission held that a restaurant cannot forcibly impose service charges on customers. A Bench of president Swapan Kumar Mahanty and member Ashok Kumar Ganguly stated that service charge on a restaurant bill is voluntary and not mandatory as per the guidelines for Fair Trade Practice. 

In 2018, the Complainant, along with his friends, had dinner at Yauatcha Kolkata. After receiving the bill, he voiced the service charge; the manager told him that the service charge is mandatory at their restaurant. The Complainant paid the bill to avoid any conflict but later sent a legal notice to the restaurant seeking an apology and ₹25,000 as compensation. 

The Bench noted that the restaurant filed no written statement in reply to the legal notice. In 2017, the Government of India issued fair trade practices stating that payment of service charge is optional and entirely depends on the consumers. 

The Bench further held that such conduct of the restaurant was against the provisions of the directions of the Ministry of Consumer Affairs and also against the Consumer Protection Act. Insisting payment of service charge by the Complainant was illegal and contrary to law.

The Bench held that the restaurant had committed an unfair trade practice and directed the restaurant to refund the service charge as well as pay ₹13,000 as compensation and litigation charges to the Complainant.

Author: Papiha Ghoshal