The Central Consumer Protection Authority (CCPA) on July 4, 2022 has issued Guidelines to prevent unfair trade practices and protection of consumer interest with regard to levy of service charge in hotels and restaurants.
The following has been stated namely: -
• The following Guidelines has been levied namely: -
1. No hotel or restaurant shall add service charge automatically or by default in the bill.
2. Service charge shall not be collected from consumers by any other name.
3. 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.
4. No restriction on entry or provision of services based on collection of service charge shall be imposed on consumers.
5. Service charge shall not be collected by adding it along with the food bill and levying GST on the total amount
• If a hotel or restaurant is found levying service charge, a consumer may: -
1. Make a request to the concerned hotel or restaurant to remove service charge from the bill amount.
2. Lodge a complaint on the National Consumer Helpline (NCH).
3. File a complaint against unfair trade practice with the Consumer Commission.
4. Submit a complaint to the District Collector of the concerned district for investigation and subsequent proceeding by the CCPA.
[Notification No. J-25/57/2022-CCPA]
