The Live Ahmedabad
  • Home
  • Ahd City
  • Business
  • Entertainment
  • Education
  • Crime
  • Health
  • Politics
  • Sports
  • Featured

The Live Ahmedabad

  • Home
  • Ahd City
  • Business
  • Entertainment
  • Education
  • Crime
  • Health
  • Politics
  • Sports
  • Featured
Nation

To Pay Or Not: Know what Govt says about service charge in restaurant bills

by TLAteam May 24, 2022May 24, 2022
written by TLAteam May 24, 2022May 24, 2022
To Pay Or Not: Know what Govt says about service charge in restaurant bills

Many high-end restaurants and hotels charge customers a service fee for their services. Many individuals pay these extra prices freely when they are happy with the restaurant or hotel’s service.

Business News

Customers are occasionally forced to pay service costs by the establishment, even if they are dissatisfied with the services. But did you know that, according to government rules, paying service charges is only voluntary if the consumer is satisfied with the service provided?

The Central government convened a conference of restaurant owners on Monday to discuss the problem of service charges imposed by restaurants on their customers. The meeting with the National Restaurant Association of India has been scheduled for June 2, 2022, by the Department of Consumer Affairs (DoCA) of the Ministry of Consumer Affairs, Food and Public Distribution. The meeting will cover “problems connected to service charges assessed by restaurants,” according to a statement released by the government.

This comes in the wake of media reports as well as grievances registered by consumers on the National Consumer Helpline (NCH) about restaurants and eateries collecting service charges from consumers by default. The government also referred to the guidelines issued in April 2017 and reiterated that payment of ‘service charge’ at restaurants is voluntary and at the discretion of consumers.

Government’s Guidelines On Service Charges

• In April 2017, the DoCA issued guidelines to hotels/restaurants on service charges. The guidelines note that entry of a customer in a restaurant cannot, by itself, be construed as a consent to pay the service charge and any restriction on entry on the consumer by way of forcing them to pay the service charge as a condition per cent to placing an order amount to ‘restrictive trade practice’ under the Consumer Protection Act.

• Instead, the bill “may clearly display that service charge is voluntary, and the service charge column of the bill may be left blank for the customer to fill up before making payment,” the guidelines say.

• The guidelines state that a component of service is inherent in the provision of food and beverages ordered by a customer, and therefore the pricing of the product is expected to cover both the goods and service components.

• As per the guidelines, placing of an order by a customer amount to his/her agreement to pay the prices displayed on the menu card along with the applicable taxes, and charging for anything other than the afore-mentioned, without express consent of the customer, would amount to unfair trade practice as defined under the Act.

• As per the guidelines, a customer is entitled to exercise their rights as a consumer to be heard and redressed under provisions of the Act in case of unfair/restrictive trade practices. Consumers can approach a Consumer Disputes Redressal Commission/Forum of appropriate jurisdiction.

• It says that when a customer places an order, it amounts to their agreement to pay the prices displayed on the menu card along with the applicable taxes, charging for anything other than these without the customer’s express would amount to unfair trade practice as defined under the Consumer Protection Act, 1986.

• The guidelines note that if a customer pays any tip or gratuity towards hospitality received beyond the basic minimum service already contracted between them and the hotel management, then “it is a separate transaction between the customer and the staff of the hotel or restaurant, which is entered into, at the customer’s discretion.”

• It further notes that customer is in a position to assess the quality of service only after completing their meal and then decide whether to pay a tip and how much.

Ahmedabad newsGujaratlatest news
0 comment
previous post
DRDO report finds serious battery defects in EVs that caught fire
next post
Gautam Adani, Karuna Nundy, Khurram Parvez among TIME’s ‘100 most influential people of 2022’

You may also like

RCB Victory Celebration Turns Deadly: 3 Dead Many...

June 4, 2025

Monsoon Session of Parliament from July 21; First...

June 4, 2025

Medical Representatives Barred from Government Hospitals, Says Health...

June 4, 2025

“18 Years. 2 Virgins”: Durex India’s Bold IPL...

June 3, 2025

Nashik Kumbh Mela 2025 Starts on October 31-...

June 3, 2025

Rajeev Shukla Likely to Become BCCI President as...

June 2, 2025

Sensex Falls 700 Points Despite Strong GDP Growth:...

June 2, 2025

New Financial Rules from June 1: EPFO, Aadhaar...

June 1, 2025

COVID-19 Cases Rise in India, Over 3,000 Active;...

June 1, 2025

Indian Tourist Attacked by Tiger in Thailand While...

May 31, 2025

Leave a Comment Cancel Reply

Save my name, email, and website in this browser for the next time I comment.

Business News

Recent Posts

  • Woman lures lover to Sabarmati Riverfront, loots ₹6 lakh from him

    June 4, 2025
  • AESL wins Rs-1,660 crore transmission project in Maharashtra

    June 4, 2025
  • WHEN YOU’VE FOUND “THE ONE” SEAL IT WITH THE PLATINUM LOVE BANDS ‘THE WEDDING EDITION’

    June 4, 2025
  • Jinal Joshi Mesmerizes in Bikini Photoshoot

    June 4, 2025
  • RCB Victory Celebration Turns Deadly: 3 Dead Many Injured in Stampede Outside Chinnaswamy Stadium (VIDEO)

    June 4, 2025
May 2022
MTWTFSS
 1
2345678
9101112131415
16171819202122
23242526272829
3031 
« Apr Jun »
The Live Ahmedabad
Footer Logo
  • Home
  • Ahd City
  • Business
  • Entertainment
  • Education
  • Crime
  • Health
  • Politics
  • Sports
  • Featured
  • Privacy Policy
  • Disclaimer
  • Cookie Policy
  • Terms of use
  • Advertise with Us
  • Work With Us
  • Contact Us

© 2021 - The Live Ahmedabad. All Rights Reserved.