Hotels, restaurants can't force customers to pay service charge

Tags: National News

The Central Consumer Protection Authority (CCPA) on July 4 barred hotels and restaurants from adding service charges "automatically or by default" to food bills.

• If any restaurant or hotel collects service charges from customers, then they can file a complaint.

• If any restaurant or hotel collects service charges from customers, then they can file a complaint on the National Consumer Helpline (NCH).

• A complaint can also be lodged with the Consumer Commission or the District Collector in this regard.

• The consumer can also file a complaint against unfair trade practice with the consumer commission through the e-daakhil portal.

• No hotel or restaurant shall compel any customer to pay service charges.

• Paying service charges will depend on the customer whether to be paid or not.

• Central Consumer Protection Authority (CCPA) 

• The Central Consumer Protection Authority (CCPA) has been set up under the Consumer Protection Act, 2019.

• Its primary objective is to promote, protect and enforce the rights of consumers.

• It is empowered to inquire into the violation of consumer rights and initiate complaints/prosecution proceedings.

• It shall consist of following members appointed by Central Government-

1. Chief Commissioner

2. Two Commissioners, they will each represent goods and services.

• It will have an Investigation Wing that will be headed by a Director General.

• District collectors will also be empowered to inquire into complaints of violation of consumer rights, unfair trade practices and false or misleading advertisements.