GOVERNMENT DIRECTIVES TO HOTELS AND RESTAURANTS: NO SERVICE FEE

Consumer Protection Authority on Monday restricted hotels and restaurants from adding service fee in the bill. It noted that in case of violation, a customer might ask the hotel/ restaurant to reduce the service fee or seek redressal by submitting a complaint.

The recommendations provided by CCPA indicate that hotels or restaurants must not include service fee automatically or by default in the meal bill. No collection of service charge may be done by any other name, the Union Ministry of Consumer Affairs, Food and Public Distribution stated in a statement.

Service fee shall not be collected by combining it along with the meal bill and levying GST on the whole amount.

Also, the consumer may make a complaint on the National Consumer Helpline (NCH), which operates as an alternate dispute redressal mechanism at the pre-litigation stage, by dialling 1915 or using the NCH mobile app,” it added. “The customer may also submit a complaint against unfair trade practise with the Consumer Commission.

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