Service charge guidelines, not law: Restaurant association

NEW DELHI: A day after union consumer affairs minister Ram Vilas Paswan said service charges were totally voluntary and that guidelines on the matter were being sent to various state governments for enforcement, restaurant associations said the guidelines were not laws.

“The present statements by the government are causing unnecessary confusion in public, which is adversely affecting the smooth functioning of restaurants. It is once again reiterated that as of now, levy of service charge by restaurants is legal and does not violate the provisions of Consumer Protection Act, 1986, since the same is mentioned in the menu and price list and informed to the customer. Unless there is a legislation, restaurants will continue to levy service charge,” said Riyaaz Amlani, president, National Restaurant Association of India, adding that all the organised food and beverage operators employ the service charge method to ensure that all employees are its beneficiaries.