CCPA stipulates that hotels or restaurants shall not add service charges

The Central Consumer Protection Authority (CCPA) has issued guidelines for preventing unfair trade practices and violation of consumer rights regarding hotels and restaurants levying service charges, stating that the consumer may lodge a complaint with the National Consumer Helpline (NCH) against such practice.

The guidelines issued by the CCPA stipulate that hotels or restaurants shall not add service charges automatically or by default to 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 the service charge and shall inform the consumer that the service charge is voluntary/optional and at the consumer's discretion.

"No restriction on entry or provision of services based on a collection of service charge shall be imposed on consumers. The service charge shall not be collected by adding it along with the food bill and levying GST on the total amount."

The CCPA said that the consumer may request the concerned hotel or restaurant to remove the service charge from the bill amount. The consumer may also complain with the National Consumer Helpline (NCH), which works as an alternate dispute redressal mechanism at the pre-litigation level by calling 1915 or through the NCH mobile app.

The consumer may also file a complaint against unfair trade practices with the Consumer Commission. The complaint can also be filed electronically through the e-daakhil portal -- GST -- www.e-daakhil.nic.in-- for its speedy and effective redressal.

The consumer can also complain to the district collector of the concerned district for investigation and subsequent proceedings by the CCPA. The complaint can be sent to the CCPA by e-mail.

The CCPA said that the issues raised by the consumers include restaurants making service charges compulsory and adding them to the bill by default, suppressing that paying such charges is optional and voluntary, and embarrassing consumers in case they resist paying a service charge. (AA/IANS)