Sanjha Morcha

Paying service charge at restaurants, hotels not mandatory

Paying service charge at restaurants, hotels not mandatory
People eat food inside a restaurant in Gurgaon. — File photo

Chandigarh, January 2

If consumers are not satisfied with service at a hotel or a restaurant, they can have the service charge waived, the Central government said on Monday.As per the Department of Consumer Affairs, a number of complaints from consumers have been received that hotels and restaurants are following the practice of charging ‘service charge’ in the range of 5-20%, in lieu of tips, which a consumer is forced to pay irrespective of the kind of service provided to him.

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After the government sought a clarification, the Hotel Association of India replied that the service charge is completely discretionary and should a customer be dissatisfied with the dining experience he/she can have it waived off. Therefore, it is deemed to be accepted voluntarily.

The Consumer Protection Act, 1986, provides that a trade practice which, for the purpose of promoting the sale, use or the supply of any goods or for the provision of any service, adopts any unfair method or deceptive practice, is to be treated as an unfair trade practice and that a consumer can make a complaint to the appropriate consumer forum established under the Act against such unfair trade practices, a release issued by the Department of Consumer Affairs said.The department has also asked the state governments to sensitise the companies, hotels and restaurants in the states regarding aforementioned provisions of the Consumer Protection Act.The states have also been asked to advise hotels and restaurants to disseminate information through display at the appropriate place that the ‘service charges’ are voluntary and a consumer dissatisfied with the services can have it waived off. — TNS