Consumer Authority Cracks Down on Hidden Restaurant Charges
The Central Consumer Protection Authority (CCPA) issued a firm warning on Wednesday to hotels and restaurants across the country, stating that strict action will be taken if they are found levying additional charges under misleading heads such as "LPG charges," "gas surcharge," or "fuel cost recovery" on food bills. The authority emphasized that such practices constitute an unfair trade practice under the Consumer Protection Act.
Advisory Targets Automatic Surcharges
In an official advisory, the CCPA invoked provisions of the Consumer Protection Act, observing that these charges are often imposed by default to circumvent existing guidelines on service charges. The authority clarified that no such charges shall be levied automatically, and violations may lead to severe penalties. This move comes in response to numerous grievances received through the National Consumer Helpline (NCH) and various media reports highlighting the issue.
The CCPA stated, "Grievances received on the National Consumer Helpline and media reports show that certain hotels and restaurants are levying such charges in the consumer bill by default, over and above the price of food and beverages displayed in the menu and applicable taxes. Such practices result in lack of transparency and impose unjustified costs on consumers."
Clarification on Operational Costs
The authority further clarified that input costs, including fuel, LPG, electricity, and other operational expenses, are integral parts of running a business. These costs must be factored into the pricing of menu items from the outset. The CCPA advised that the price displayed in the menu should be the final price, exclusive only of applicable taxes, ensuring consumers are not misled or compelled to pay any additional charge that is not voluntary in nature.
Consumer Rights and Recourse
For consumers who encounter such practices, the CCPA outlined several steps to take:
- Request the hotel or restaurant to remove the unauthorized charge from the bill immediately.
- Lodge a complaint on the National Consumer Helpline by calling 1915 or through its dedicated mobile application.
- File a formal complaint before the appropriate consumer commission via the e-Jagriti portal for legal recourse.
This advisory underscores the CCPA's commitment to protecting consumer rights and promoting fair trade practices in the hospitality industry, aiming to eliminate hidden costs and ensure transparency in billing.
