On July 4, 2022, the Central Consumer Protection Authority (CCPA) issued certain guidelines to prevent the violation of consumer rights in hotels and restaurants. These guidelines state that the service charge in restaurants and hotels is illegal and cannot be levied automatically or by default in the food bills. When you visit a restaurant, if you are forced to pay a service charge, you have multiple ways to file a complaint against this practice.
In this article, we will discuss what a service charge is, what are the rules set against levying service charges in restaurants, and what can you do as a customer if you are forced to pay this charge.
What is Service Charge?
The main components of a restaurant bill are the cost of the food and beverages consumed and the taxes (GST). Apart from these, the restaurants would also levy a service charge of 5-10% on the bill. This has become a matter of concern among consumers, leading to the guidelines issued by the CCPA against service charges in restaurants.
What Are The Guidelines Against Service Charges?
After a meeting with the hotel and restaurant bodies, the CCPA issued the following guidelines regarding service charges:
Hotels or restaurants must not add any service charge to the food bill automatically or by default.
They must not collect the service charge by any other name.
Hotels or restaurants may not force any consumer to pay the service charge.
They must clearly inform the customer that paying the service charge is voluntary/optional.
Restaurants or hotels cannot restrict entry or the provision of services based on the payment of service charges by the customer.
They are not allowed to collect any service charge from the customer by adding it to the food bill and levying taxes on the total amount.
Suggested Read: Restaurants Lobby Slams Latest Service Charge Guidelines
What Can You Do If The Restaurant Forces You To Pay Service Charge?
As per the CCPA guidelines, if a hotel or restaurant is violating the guidelines and is forcing you to pay a service charge, you can take the following steps:
You can request the restaurant or hotel to remove the service charge from the bill.
You can file a complaint against the restaurant on the National Consumer Helpline (NCH) by calling 1915 or on the NCH mobile app.
You can also lodge a complaint with the Consumer Commission against such unfair violations. This can be done online through the e-daakhil portal (www.e-daakhil.nic.in).
Another easy way to lodge a complaint against the concerned restaurant is to submit the complaint to the concerned District Collector.
You can also file the complaint directly with the CCPA by writing to them at com-ccpa@nic.in.
Wrapping Up
Now that you are aware of the guidelines set by the Central Consumer Protection Authority against levying services charges in hotels and restaurants, you must read your food and beverages bill carefully next time you visit a restaurant. If the hotel or restaurant levies and service charge in the bill and you do not wish to pay it, you have the right to refuse to pay the same. You can simply request them to remove the amount from the bill and lodge a complaint against them with the concerned authorities if they refuse to do so and force you to pay the service charge.
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