In a new set of regulations released on Monday, July 4, the central government forbade hotels and restaurants from charging a service charge without the diner’s express permission. Customers can register a complaint if the prohibition is broken, according to a statement from the ministry of consumer affairs.
Authorities announced the decision after a rise in customer complaints about being forced to pay the fee.
Restaurants frequently add a “service charge” category to the bill that ranges from 5 to 15 percent in tips.
The government released a statement,
The guidelines issued by CCPA stipulate that restaurants or hotels shall not add service charge automatically or by default in the food bill. Any other name shall do no collection of service charge. No restaurant or hotel shall force a consumer to pay the service charge and inform that service charge is voluntary, optional and at consumer’s discretion.
As per sources, The guidelines indicated that there is no restriction on hotels or restaurants setting the pricing at which they want to give food or drinks to customers because a service component is already included in the cost of the food and beverages they serve.
The guidelines also stated “Charging anything other than the said amount would amount to unfair trade practices under the [Consumer Protection] Act.”
Customers should first contact the company. If the situation is still unresolved, they can file a complaint with the district administration or raise the issue with the National Consumer Helpline (NCH) by dialing 1915 or using its mobile app.
Image Credit: cntraveller
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