Hotels, restaurants banned from charging service fees: CCPA order

0


The Central Consumer Protection Authority (CCPA) on Monday banned hotels and restaurants from levying service charges automatically or by default on food bills and allowed customers to file complaints for violations.

Amid growing complaints, the CCPA has released guidelines to prevent unfair business practices and the violation of consumer rights regarding the collection of service fees.

Per the guidelines, “No hotel or restaurant should add a service charge automatically or by default to the bill.”

There should be no collection of service fees under any other name, he added.

No hotel or restaurant can force a consumer to pay a service charge. They must clearly inform the consumer that service charges are voluntary, optional and at the discretion of the consumer.

“No restrictions on entry or provision of services based on the levying of service charges shall be imposed on consumers,” the directive states.

Also, the service charge cannot be collected by adding it to the food bill and charging the GST on the total amount.

If a consumer finds that a hotel or restaurant is charging a service charge in violation of the guidelines, he or she can ask the establishment concerned to remove it from the amount of the bill.

Consumers can also lodge a complaint with the National Consumer Helpline (NCH), which operates as an alternative dispute resolution mechanism at the pre-litigation level, by calling 1915 or via the NCH mobile app.

They can also lodge complaints with the Consumer Commission.

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear reader,

Business Standard has always endeavored to provide up-to-date information and commentary on developments that matter to you and that have wider political and economic implications for the country and the world. Your constant encouragement and feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these challenging times stemming from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative opinions and incisive commentary on relevant topical issues.
However, we have a request.

As we battle the economic impact of the pandemic, we need your support even more so that we can continue to bring you more great content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of bringing you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism we are committed to.

Support quality journalism and subscribe to Business Standard.

digital editor

Share.

About Author

Comments are closed.