What To Do When Restaurant Levies Service Charge: The central government, on July 4, had forbidden hotels and restaurants to levy service charges from customers. The Ministry of Consumer Affairs, Food & Public Distribution had clarified that if any consumer finds that a hotel or restaurant is levying a service charge in violation of the issued guidelines, the consumer may make a request to the concerned hotel or restaurant to remove the charge from the bill.
A service charge, which is a charge levied as 10 percent on the food bill, is different from a service tax. Service charge is essentially a tip given to the restaurant for providing its services. It is similar to paying delivery fees to food delivery apps or paying convenience fees to various service providers. It is a common practise in the US and UK to pay at least 10-15 percent service charge on the food bill.
However, with the setting up of Central Consumer Protection Authority (CCPA) in 2020, the central government has banned hotels and restaurants from levying a service charge from the customer. If any eatery still insists on levying the charge, then customers can file a complaint with designated authorities.
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Here are some ways in which you can file a complaint against the restaurant forcibly levying a service charge:
- The consumer can lodge a complaint against the restaurant or hotel by calling 1915 or through the NCH mobile app. “The consumer may 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,” the ministry said in a statement issued on Saturday.
- The consumer can also file a complaint against unfair trade practice with the Consumer Commission.
- The Complaint can also be filed electronically through e-daakhil portal www.edaakhil.nic.in for its speedy and effective redressal.
- In addition, the consumer may submit a complaint to the District Collector of the concerned district for investigation and subsequent proceeding by the CCPA.
- The complaint may also be sent to the CCPA by e-mail at [email protected], the statement added.
The CCPA has been set up with an updating of the Consumer Protection Act, 1986 to Consumer Protection Act, 2019 which has widened the scope of the act to include more unfair trade practices within the law and bring regulatory and mediating forces.
