Advisory Regarding Hotels And Restaurants Levying Service Charge by Department of Food & Supplies and Consumer Affairs and Legal Metrology, U.T. Chandigarh
It has been noticed that some restaurants and hotels are levying service charge in the bill by default, without informing consumers that paying such charge is voluntary and optional. Service charge is being levied in addition to the total price of the food items mentioned in the menu and applicable taxes, often in the guise of some other fee or charge. Further, It has also been noticed that some customers have been paying tips to the waiters in addition to Service Charges under the mistaken impression that service charge is a part of taxes.
As per the guidelines issued by Central Consumer Protection Authority (CCPA), under the Consumer Protection Act, 2019, Service Charge cannot be added in the bill involuntarily, without allowing consumers the choice or discretion to decide whether they want to pay such charge or not.
Therefore, in compliance with the guideline issued by the CCPA, the Department of Food & Supplies and Consumer Affairs and Legal Metrology, U.T., Chandigarh has issued an advisory in public interest to Hotels and restaurants that no hotel or restaurant shall add service charge automatically or by default in the bill. Service charge shall not be collected from consumers 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. No restriction on entry or provision of services based on collection of service charge shall be imposed on consumers. Service charge shall not be collected by adding it along with the food bill and levying GST on the total amount.
The general public is also informed that if any consumer finds a hotel or restaurant that is levying service charge in violation to the above-mentioned guidelines, a consumer may make a request to the concerned hotel or restaurant to remove service charge from the bill amount. Lodge a complaint on the Consumer Helpline, which works as an alternate dispute redressal mechanism at the pre-litigation level by calling 1915 or through whatsapp number 8800001915 or through the NCH mobile app. Consumers can file a complaint against unfair trade practice with the Consumer Commission. The Complaint can also be filed electronically through portal www.e-jagriti.gov.in for its speedy and effective redressal and submit a complaint to the CCPA by e-mail at com-ccpa@nic.in. Consumer can also send a complaint to the Department of Food & Supplies and Consumer Affairs and Legal Metrology, U.T., Chandigarh by helpline number at 0172-2703956 or email at fcs-chd@nic.in for subsequent proceeding by the CCPA.
