Restaurants billing ‘Service Charges’ in addition to taxes is optional: Department of Consumer Affairs
Team Udayavani, Jan 2, 2017, 5:12 PM IST
New Delhi: A number of complaints from consumers have been received that hotels and restaurants are following the practice of charging ‘service charge’ in the range of 5-20%, in lieu of tips, which a consumer is forced to pay irrespective of the kind of service provided to him.
The Consumer Protection Act, 1986 provides that a trade practice which, for the purpose of promoting the sale, use or the supply of any goods or for the provision of any service, adopts any unfair method or deceptive practice, is to be treated as an unfair trade practice and that a consumer can make a complaint to the appropriate consumer forum established under the Act against such unfair trade practices.
In this context, the department of Consumer Affairs, Central Government has called for clarification from the Hotel Association of India, which have replied that the service charge is completely discretionary and should a customer be dissatisfied with the dining experience he or she can have it waived off. Therefore, it is deemed to be accepted voluntarily.
The Department of Consumer Affairs has asked the State Governments to sensitize the companies, hotels and restaurants in the states regarding aforementioned provisions of the Consumer Protection Act, 1986 and also to advise the Hotels, Restaurants to disseminate information through display at the appropriate place in the hotels, restaurants that the ‘service charges” are discretionary, voluntary and a consumer dissatisfied with the services can have it waived off.
Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.
Top News
Related Articles More
No greater feeling than serving those in need: Outgoing CJI D Y Chandrachud
CJI Chandrachud: A legacy of landmark verdicts that shaped society and some controversy too
Akhilesh Yadav attacks BJP on demonetisation anniversary
DeMo paved way for monopolies by devastating MSMEs, informal sector: Rahul on note ban anniversary
Comply with order allowing minority student to attend St Stephen’s College: HC tells DU
MUST WATCH
Latest Additions
Unauthorized bus stops at signals fuel traffic woes and safety concerns
No greater feeling than serving those in need: Outgoing CJI D Y Chandrachud
Baikampady: Here, even elederly have to crawl under trains to cross tracks!
CJI Chandrachud: A legacy of landmark verdicts that shaped society and some controversy too
Neeraj Chopra to head to South Africa for off-season training later this month
Thanks for visiting Udayavani
You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.