CCPA cracks down on restaurants across India over service charges without consent of consumers

New Delhi, July 19: The Central Consumer Protection Authority (CCPA) has initiated suo motu action against 41 restaurants across the country for violation of consumer rights and adoption of unfair trade practices by levying service charge by default on consumers’ bills, as per a statement on Sunday.
The action has been taken based on complaints received through the National Consumer Helpline (NCH). The complaints were supported by invoices showing that service charge had been automatically added to consumers’ bills without obtaining their explicit consent.
Based on these complaints, CCPA conducted investigations and found that the automatic levy of service charge violated the Guidelines to Prevent Unfair Trade Practices and Protection of Consumer Interest about Levy of Service Charge in Hotels and Restaurants.
The Guidelines to Prevent Unfair Trade Practices and Protection of Consumer Interest about Levy of Service Charge in Hotels and Restaurants, issued on 4 July 2022, provide that no hotel or restaurant shall automatically or by default add a service charge to the food bill. No hotel or restaurant shall force a consumer to pay a service charge and must clearly inform consumers that it is voluntary, optional, and entirely at the consumer’s discretion. (IANS)