Restaurants and hotels are prohibited from levying service charges: CCPA

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• Jul 4, 2022 | Dhupali Das

As per rules, no hotels or restaurants can add service charges to the bill automatically or by default. 

Digital Desk: The Central Consumer Protection Authority (CCPA) on Monday forbade hotels and restaurants from including a service charge in food bills automatically or by default and allowed clients to register complaints in the case of a violation.

In response to increased complaints, the CCPA has issued guidelines for combating unfair trade practices and violations of consumer rights in levying service charges.

As per rules, no hotels or restaurants can add service charges to the bill automatically or by default. 

It further stated that service charges should not be collected under any other names.

"No hotel or restaurant has the right to demand service fees from customers. They must clarify to the customer that the service price is optional, voluntary, and up to the customer's choice," it stated. 

The policy stated, "consumers shall not be subject to any entry restriction or provision of services based on the collection of service charge."

Additionally, the service charge cannot be collected by including it in the food bill and adding GST to the final amount.

Customers can ask the concerned establishment to deduct the service charge from the bill's total if they discover that a hotel or restaurant is charging one in violation of the rules.

By dialing 1915 or using the NCH mobile app, customers can also file a complaint with the National Consumer Helpline (NCH), which serves as an alternative dispute resolution process at the pre-litigation level.

Additionally, they have the option of complaining to the Consumer Commission.