Hotels, restaurants cannot add service charge automatically or by default in food bill: Central Consumer Protection Authority

The CCPA guidelines, issued with the aim of preventing unfair trade practices and violation of consumer rights in this regard, also provide for a National Consumer Helpline number to lodge complaints.

The Central Consumer Protection Authority (CCPA) has issued guidelines stipulating that hotels or restaurants should not add service charges automatically or by default to food bills.

The guidelines are as follows:

• Hotels or restaurants shall not add service charges automatically or by default to the food bill;

• No collection of service charge shall be done by any other name;

• No hotel or restaurant shall force a consumer to pay the service charge and shall clearly inform the consumer that the service charge is voluntary, optional and at the consumer’s discretion;

• No restriction on entry or provision of services based on the collection of service charge shall be imposed on consumers; and

• The service charge shall not be collected by adding it along with the food bill and levying GST on the total amount

No collection of service charge shall be done by any other name. No hotel or restaurant shall force a consumer to pay the service charge and clearly inform the consumer that the service charge is voluntary, optional and at the consumer’s discretion.

No collection of service charge shall be done by any other name. No hotel or restaurant shall force a consumer to pay service charge and clearly inform the consumer that the service charge is voluntary, optional and at the consumer’s discretion.