According to the latest guidelines, hotels and restaurants now cannot add service charge automatically or by default in the bill amount. However, some of these eating joints are still not following the new rules. The Central Consumer Protection Authority (CCPA) published the new regulations on July 4. This forbids hotels and restaurants from adding service charges to bills automatically or by default.
The Ministry of Consumer Affairs, Food & Public Distribution said that if a consumer finds that a restaurant or hotel is charging a service charge that is in violation of the guidelines, then they can ask them to remove the charge from the invoice. In case of refusal, the consumer can file a complaint against the establishment through the NCH mobile app or by calling 1915.
Read | Restaurants barred from imposing service charge: What customers should know
What new guidelines suggest?
From July 4, government had forbidden hotels and restaurants to levy service charges from customers.
If a consumer finds that a service charge is being levied in violation of the issued guidelines, then they can ask to remove it from the bill.
Consumer may make a request to the concerned hotel or restaurant to remove the charge from the bill.
A service charge, which is a charge levied as 10% on the food bill, is different from a service tax.
Service charge is essentially a tip given to the hotel and restaurant for providing its services.
It is similar to paying delivery fees to food delivery apps or paying convenience fees to various service providers.
Ways to file a complaint against levying a service charge
The consumer can lodge a complaint against the restaurant or hotel by calling 1915 or through the NCH mobile app.
The consumer can also file a complaint against unfair trade practice with the Consumer Commission.
Complaint can be filed electronically through e-daakhil portal – www.edaakhil.nic.in for speedy and effective redressal.
Consumer may submit a complaint to the District Collector for investigation and subsequent proceeding by the CCPA.
The complaint may also be sent to the CCPA by e-mail at com-ccpa@nic.in, the statement added.
