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Hotel-restaurant service charges are discontinued in India

  • International
  • Lead News
  • 05 July, 2022 11:24:19

Photo: Collected

International Desk: The Consumer Protection Authority of India has banned the collection of service charges from consumers in hotels and restaurants. The ban comes amid allegations of forcing consumers to pay service charges. According to the BBC, restaurants in India used to charge 5 to 15 per cent extra in the name of service charge. But according to the new rules, restaurants will not be able to charge service charges on customers' bills. The Consumer Protection Authority of India (CPA) has said in a new directive that no additional bounties can be taken from shoppers in restaurants. Those who do not want to give a tip, can not be prevented from coming to the restaurant. Bounties in restaurants have been discussed in India for years. Customers complained that they were not informed in advance about the extra money charged from them. Then in 2016, the Consumer Rights Department of the Central Government of India issued a directive. The directive says that customers will not have to pay any extra money except the price of the menu card products and government duty. The Consumer Rights Department says whether or not to give a bounty is a matter of the consumer's will and reluctance. Forcing customers to pay extra without permission is tantamount to illegal business activities. Instead of these, there is talk of increasing the fair wages of the workers and the prices of the products. Last month, the government held a meeting with an association of Indian restaurant owners. The meeting was told that complaints were coming from customers, forcing restaurants to pay extra in the name of service charges. Many times the amount is much higher. Customers are being harassed for not paying extra. Recently the number of such complaints from customers has increased a lot.

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