Service Charges by hotels/restaurants voluntary
A number of complaints from consumers have been received from this circle and other avenues 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/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 o more
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 o more
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What if the Restaurants have not displayed? What is the Restaurants force the customers to pay the Service Charges? How much penalty is levied on them? Even if there is a gramatical mistake on the MRP labels of the boxes, you'll charge a penalty of Rs. 25,000 per partner or director which is so high. There should definately be more penalty on Restaurants for fleecing the customers with full knowledge. more
Jun 24
If we post Invoices with Service charges levied, which proves that Restaurants are not following instructions & fleecing consumers, what penalty is levied on them? How much fine would they have to pay? more
Jun 18
Our country is such. Throw stone. Either stone or fruit along with stone will fall down. To make use of the law, one should take some trouble. more
Oct 14
If service charges (tips) are for the services rendered satisfactorily or otherwise and when it is discretionary, why it should form part of the bill? Government must rethink on this. more
Jan 21
When you pay₹50 for a dosa it includes everything from raw materials, cooking and serving charges. To add a service charge to it is double impost, a crime. Is this the way of simplifying tax laws?? Tax on tax?? more
Jan 19
