Some bars and restaurants that are adding service charges to customers’ bills have stopped adding the amount after notification by the central government. “Service charges were removed by many restaurants a few years back after the central government clarified that it is optional. Says Uttam Reddy of Rayalaseema Ruchulu, who never added service charge to the bills.
“We did not take service charge. So there is no question of stopping it,” said the owner of a cafe in Begumpet. On Monday, the Department of Consumer Affairs issued a notification barring food businesses from levying service charges. “The decision of a consumer to pay a tip or gratuity is not made merely by entering a restaurant or placing an order. Therefore, service charges cannot be added to the bill involuntarily without giving consumers the option or discretion to decide whether they wish to pay such charges or not. ,
There was a need for sharp words in the Central Consumer Protection Authority as the earlier one created ambiguity. In 2017, the Center had clarified that ‘the bill presented to the customer can clearly demonstrate that the service charge is voluntary’. Using this caveat, bars and pubs continued to levy service charges in the range of 8 to 10% of the total bill amount, leading to verbal controversy and heated up online. “A year ago when we had dinner in Chile. The carrier informed us about the service charge and offered to receive the bill without it. We asked for it and added a tip,” says P. Swaraj, an infotech activist who shares his experience with the issue. But there were some who created social media groups called ‘Foodies Against Service Charge’ to question the ethics of the service charge.
The July 4 notification puts a limit on the issue. Customers still aggrieved by this issue can contact the National Consumer Helpline: 1915