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| No Service Charge | | |
The Central Consumer Protection Authority (CCPA) recently barred hotels and restaurants from adding a service charge “automatically or by default” in the food bill.
The forum stated that in case of violation, a consumer can ask the hotel/ restaurant to remove the service charge, or seek redressal by filing a complaint.
According to the guidelines issued by the CCPA for “preventing unfair trade practices and violation of consumer rights with regard to levying of service charge in hotels and restaurants”, consumers can file complaints online, via e-daakhil portal (www.e-daakhil.nic.in).
In addition, they can submit a complaint to the district collector for investigation and subsequent proceedings by the CCPA. The consumers can also email their complaints.
The new guidelines have come as a relief for customers, who besides paying the hefty bills had to shed out 15% to 20% extra on the payable amount. Earlier the service charge was levied by the big hotels but eventually most of the restaurants and hotels started following the practice. There was nothing in black white about how much these establishments used to pay to the government as tax or service charge.
A number of complaints were registered in the National Consumer Helpline by consumers with regard to levying of service charge. The issues raised by consumers included restaurants making service charge compulsory and adding it in the bill by default, suppressing that paying such charge is optional and voluntary, and embarrassing consumers in case they resisted paying service charge.
The new guidelines issued by the CCPA have made it amply clear that customers cannot be forced to pay the service charge.
The hotels and restaurants cannot dictate terms to customers anymore. Neither can they levy any extra charges.
The active grievance redressal system that has been put in place will ensure that if any establishment violates the new guidelines will be dealt with according to the law of the land.
The government needs to ensure that the rates of the hotels and restaurants are regulated so that the customers are not made to pay through their nose.
Rates need to be regulated to ensure that these establishments remain accessible to all and don’t just become a fiefdom of only a few people. |
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