Hotels, restaurants cannot force consumers to pay service charges
The government has barred hotels and restaurants from forcing customers to pay service charges as part of the food bill.
An order issued by the Central Consumer Protection Authority (CCPA) today said that hotels and restaurants have been banned from adding service charges to the bill by default.
Those guidelines were issued after a surge in consumer complaints about restaurants charging extortionate tips.
While there was some confusion earlier when the consumer affairs ministry asked restaurants and hotels not to charge service charges, there were no clear guidelines, and the National Restaurant Association of India (NRAI) argued that the charges for services were “legal”. was. Unless the government creates a legal framework.
Now, the latest guidelines are clear and empower consumers to lodge complaints on the National Consumer Helpline (NCH) against any service charges. Consumers can also lodge complaints electronically through the e-Dakhil portal for quick and efficient resolution.
“No hotel or restaurant shall add service charges to the bill automatically or by default,” the guidelines say. It said that the service charge should not be recovered by any other name.
“No restriction shall be imposed on the entry or provision of services on the basis of collection of service charges,” the order said.
Hotels and restaurants can no longer force customers to pay a service fee; Rather it will be their choice.