Restaurants, hotels can’t charge service fees; CCPA releases guidelines

‘No restrictions on admission or supply of services based on the collection of service charges shall be placed on customers. The service fee shall not be collected by adding it to the meal bill and levying GST on the whole amount. The rules may be viewed by clicking on the link, ‘read the statement.

If a customer discovers that a hotel or restaurant is charging a service fee in contravention of the standards, the consumer may request that the service charge be removed from the bill amount. In addition, the consumer may file a complaint with the National Consumer Helpline (NCH), which serves as an additional dispute resolution mechanism at the pre-litigation stage, by dialling 1915 or via the NCH mobile app.

The customer may also register a complaint with the Consumer Commission about unfair trade practises. The complaint can also be lodged online using the e-daakhil site for prompt and effective resolution. In addition, the consumer may file a complaint with the District Collector of the relevant district for inquiry and eventual action by the CCPA. E-mailing the complaint to the CCPA is also an option.

Consumers have lodged a number of complaints with the National Consumer Helpline (NCH) about the imposition of service charges. Consumers have complained about restaurants making service charges mandatory and automatically adding them to their bills, concealing the fact that such charges are discretionary and voluntary, and shaming customers who refuse to pay them. Several instances involving the imposition of service charges have also been found in favour of consumers by consumer commissioners, with the same being deemed an unfair commercial practise and a breach of consumer rights.