Hotels, restaurants barred from levying service charge
India Today
Amid rising complaints, the CCPA has issued guidelines for preventing unfair trade practices and violation of consumer rights with regard to levying of service charge.
The Central Consumer Protection Authority (CCPA) on Monday barred hotels and restaurants from levying service charge automatically or by default in food bills and allowed customers to file complaints in case of violation.
Amid rising complaints, the CCPA has issued guidelines for preventing unfair trade practices and violation of consumer rights with regard to levying of service charge.
As per the guidelines, "No hotels or restaurants shall add service charge automatically or by default in the bill."
There should not be any collection of service charge by any other name, it added.
No hotel or restaurant can force a consumer to pay service charge. They have to 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," the guideline said.
Further, service charge cannot be collected by adding it along with the food bill and levying GST on the total amount.
