Central Consumer Protection Authority (CCPA) has now said that Hotels and restaurants are now barred from levying service charges automatically or by default on food bills. Customers can file a case on violation.
CCPA Said,”No hotels or restaurants shall add service charge automatically or by default in the bill. There should not be any collection of service charge by any other name.”
Statement was issued in this matter by the Union consumer affairs, food and public distribution. Hotels and restaurants cannot force customers to pay service charges and have to inform them that this charge is voluntary, optional and at their (customers) discretion, the consumer panel said.The guidelines further said there is no restriction on entry or provision of services based on the collection of service charges that shall be imposed on customers.
Restaurants And Eateries Required To Make Their Service Tax Voluntary, Not Forceful!
This service charge also cannot be collected by adding it along with the food bill and levying the Goods and Services Tax (GST) on the total amount.