The Central Consumer Protection Authority has barred Hotels and Restaurants from Leying Service Charges automatically or by Default in food bills. noo onwards, Hotels or Restaurants cannot add Service charges automatically to Food Bill.

Hotels or Restaurants cannot add Service charges automatically to Food Bill

It also empowered customers to file complaints in case of violation with the consumer commissions, including through ‘e-daakhil‘ and even district collectors.

The Authority, set up under the Consumer Protection Act, has issued detailed guidelines specifying the duties of Hotels or Restaurants and the rights of consumers and termed laying of services charges as an ‘unfair’ trade practice.

It has Prohibited the hotels and restaurants from collecting such charges in any other name.

The CCPA also said hotels and restaurants must not link the entry of a consumer and consumption of food to the Service Charges. Customers must be informed that any such payment is at their discretion, say the guidelines issued by the authority.

Guidelines for Hotels and Restaurants

The Central Consumer Protection Authority (CCPA) has issued Guidelines for Hotels and Restaurants regarding Services Charges Collection on Food Bills. All hotels and restaurants should follow the below-mentioned guidelines issued by CCPA.

• No Automatic addition of Service Charges to the Food Bill.
• Hotels and Restaurants cannot be collected Service Charges under any other name.
• Must Inform all the Customers that it is Voluntary and Optional.
•  No Curb of Services based on such Charges.
• Services Charges can’t be added to Food Bills and GST is levied on the total amount.

Rights of Consumers

There are so many rights has been given to consumers. Here are some of the Rights of Consumers recently given by the Central Consumer Protection Authority for No Service Charges in Restaurant Bills.

• Ask Hotels or Restaurants to remove Service ChargeS from the Bills.
• Lodge Complaint with National Consumer Helpline No. 1915.
• File Complaints with consumer commissions and district collectors

Do You ask the Hotel or restaurant to remove service charges from the bill? Comment it below.

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