Restaurants Banned From Adding Service Charge to Bill
The Indian government has now banned hotels and restaurants from forcing customers to pay service charges as part of the food bill.
The Indian government has now banned hotels and restaurants from forcing customers to pay service charges as part of the food bill. An order issued by the Central Consumer Protection Authority (CCPA) on 4th July 2022 said that hotels and restaurants are banned from adding service charges by default in their bills.
Those guidelines were released after several consumers complained about restaurants forcing people to pay service charges. While there was some confusion previously when the Consumer Affairs Ministry had asked restaurants and hotels not to charge a service charge, there were no clear guidelines, and the National Restaurant Association of India (NRAI) had said that a charge for services was "legal" until the government formed a legal framework.
The guidelines which have now been legally released say, "no hotels or restaurants shall add service charge automatically or by default in the bill." It said there should be no service charge collection by any other name as well. And if any restaurant is found to be forcefully charging additional charges in the name of service charge, The consumer can file a legal complaint against the restaurant and strict action will be taken against them. However, if the consumer decides to pay an additional service charge like tip at their own will, they are allowed to do it on a personal level. What do you think about this latest guideline, do mention your thoughts in the comment section below.
