Forced to pay service charge at hotels, restaurants? Here's what you should do
PremiumAs per the new law, no hotel or restaurant shall add service charge automatically or by default in the bill.
No hotel or restaurant shall add service charge automatically or by default in the bill, as per the latest guidelines. However, the government has noticed that it is still in practice in some hotels and restaurants.
The Central Consumer Protection Authority (CCPA) published new regulations on July 4 that forbid hotels and restaurants from adding service charges to meal bills automatically or by default. Additionally, it made it very obvious what actions customers may take if the rules were broken.
As per the new law, service charge shall not be collected from consumers by any other name, no hotel or restaurant shall force a consumer to pay service charge and shall clearly inform the consumer that service charge is voluntary, optional and at consumer's discretion.
Also, no restriction on entry or provision of services based on collection of service charge shall be imposed on consumers. Service charge shall not be collected by adding it along with the food bill and levying GST on the total amount.
The latest guidelines also note that a tip or gratuity is given in appreciation for services above and beyond the bare minimum agreed upon by the customer and hotel management, and it is given at the customer's choice to the hotel or restaurant employees. A customer can evaluate the quality and level of service and determine whether or not to tip or pay gratuity and, if so, how much only after the dinner is finished.
In case you are forced to pay service charges or it is automatically or by default added to your restaurant bill, here is what you should do.
Make a request to the concerned hotel or restaurant to remove service charge from the bill amount.
Lodge a complaint on the National Consumer Helpline (NCH), which works as an alternate dispute redressal mechanism at the pre-litigation level by calling 1915 or through the NCH mobile app.
File a complaint against unfair trade practice with the Consumer Commission. The Complaint can also be filed electronically through edaakhil portal www.edaakhil.nic.in for its speedy and effective redressal.
Submit a complaint to the District Collector of the concerned district for investigation and subsequent proceeding by the CCP A. The complaint may also be sent to the CCPA by e-mail at com-ccpa@nic.in.