The District Consumer Disputes Redressal Commission in Chandigarh has imposed a penalty on an ice cream shop for unlawfully levying a service charge. The establishment has been directed to refund Rs 35.75 and pay Rs 5,000 as compensation to a city resident.
Details of the Complaint
Satinder Pal Singh Bhullar, a resident of Chandigarh, filed a complaint through his advocate Ravi Inder Singh. He visited Twisting Scoops Private Limited on the Grand Trunk Road, Jalandhar-Chandigarh highway, on February 23, 2025, and purchased ice cream worth Rs 394.
Upon examining the bill, Bhullar noticed that the shop had added a service charge of 10 per cent, amounting to Rs 35.75. He argued that this charge is impermissible under the guidelines issued by the Central Consumer Protection Authority (CCPA) on July 4, 2022, which explicitly prohibit hotels and restaurants from adding service charges to customers' bills.
Unfair Trade Practice Ruling
Bhullar alleged that when he objected to the charge and sought clarification from the manager, his grievance was not addressed, and he was compelled to pay the total bill, including the service charge. The complainant contended that this act constituted deficiency in service and an unfair trade practice.
The Commission noted that the shop owner failed to file a written reply within the stipulated period. After hearing the arguments, the Commission held that compelling the complainant to pay the service charge amounted to deficiency in service and an unfair trade practice.
Compensation and Interest Ordered
The Commission directed the shop to refund Rs 35.75 along with interest at 9 per cent per annum from the date of payment until its realisation. Additionally, the shop was ordered to pay Rs 5,000 as compensation for the mental agony and harassment suffered by the complainant.
This ruling reinforces the CCPA guidelines and serves as a warning to businesses that levy unauthorised service charges, ensuring consumer rights are protected.
