Hotels, restaurants should not force consumers to pay service charge: CCPA

The Union consumer affairs ministry on Monday directed hotels and restaurants to not add service charges automatically or by default to the bill. Releasing a set of guidelines, the Central Consumer Protection Authority (CCPA) directed that consumers should not be forced to pay the service charge and they must be informed that it is a voluntary option at their discretion.

“The guidelines issued by CCPA stipulate that hotels or restaurants shall not add service charge automatically or by default in the food bill. No hotel or restaurant shall force a consumer to pay the service charge and shall clearly inform the consumer that service charge is voluntary, optional and at consumer’s discretion,” the ministry said in a statement.

Also Read: Hotels, restaurants cannot force consumers to pay service charge. It’s voluntary

The department of consumer affairs (DoCA) earlier said that it would develop a framework soon to enforce strict compliance by the stakeholder with regard to the service charge imposed by restaurants and hotels as it negatively impacts consumers on a regular basis.

The guideline allows consumers to lodge complaints on National Consumer Helpline (NCH) number 1915 or through the NCH mobile app. They can also file complaints on the e-daakhil portal www.e-daakhil.nic.in. The CCPA order further said hotels/restaurants cannot collect service charges by any other name such as adding it with the food bill or levying GST on the total amount.

The Union ministry said several complaints related to levying service charges have been registered in NCH. “The issues raised by consumers include restaurants making service charge compulsory and adding it in the bill by default, suppressing that paying such charge is optional and voluntary and embarrassing consumers in case they resist paying service charge,” the ministry added.