The Deputy Commissioner of East Khasi Hills has reminded the public that service charges that were once levied by hotels and restaurants are not mandatory.
The issue of service charges, added by some hotels/restaurants to customers’ bills was a contested one, which the Central Consumer Protection Authority (CCPA) ruled are illegal as they count as an unfair trade practice and harm consumer interest.
As such, no hotel or restaurant shall add service charge automatically or by default in the food bill and there should be no collection of service charge done 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 the consumer’s discretion.
There can be no restriction of entry or provision of services based on collection of service charge shall be imposed on consumers and cannot be collected by adding it along with food bill and levying GST on the total amount.
Under Section 17 of the Act, a complaint relating to violation of the guidelines by hotels/restaurants, violation of consumer rights or unfair trade practices which is prejudicial to the interests of consumers as a class may be forwarded in writing or in electronic mode to the DC for investigation and subsequent processing by the CCPA.
As per instruction of the Chief Commissioner, of the CCPA, dated July 6, 2022, necessary action will be taken on complaints that may be submitted by consumers on violation of the aforementioned guidelines.
A copy of the said guidelines are available on the East Khasi Hills website.
