- The government forbids hotels and restaurants from included service fees in the price of the meals they provide.
- CCPA recently issued an order prohibiting hotels and restaurants from automatically including service costs in invoices.
- Following an increase in consumer complaints about restaurants demanding a forced gratuity, such rules were published.
The government forbids hotels and restaurants from included service fees in the price of the meals they provide.
The Central Consumer Protection Authority (CCPA) recently issued an order prohibiting hotels and restaurants from automatically including service costs in invoices.
Following an increase in consumer complaints about restaurants demanding a forced gratuity, those rules were published.
The National Restaurant Association of India (NRAI) argued that a charge for services was “legal” until the government created a legal framework, and there was some confusion in the past when the Consumer Affairs Ministry asked restaurants and hotels not to charge a service charge. However, there were no clear guidelines at the time.
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The most recent regulations are now crystal clear and grant customers the opportunity to file a complaint against any service fee charged with the National Consumer Helpline (NCH). For rapid and effective resolution, customers can now file a complaint electronically through the e-daakhil portal.
No hotels or restaurants are allowed to automatically or by default include a service charge in the bill, according to the rules. It stated that there shouldn’t be any other means of service charge collecting.
The order further said that consumers would not be subject to any access restrictions or service provision limitations based on the collection of service fees.
The choice to pay a service charge is now up to the client; hotels and restaurants cannot force it.
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