Collectors told to enforce new rules on hotel service charge

The Central Consumer Protection Authority (CCPA) has directed district collectors to ensure enforcement of guidelines issued with regard to service charge by hotels and restaurants. On receiving complaints, the district collectors have been directed to conduct an investigation and submit the report to the CCPA within 15 days.

The CCPA has also written to chief secretaries of all states and district collectors across India to arrange wide publicity of the guidelines along with its immediate implementation for protection of consumer interest, the department of consumer affairs (DoCA) said in a note.

Last week, CCPA ordered restaurants and hotels to clearly inform consumers that service charge is voluntary, optional and at consumers' discretion and they can also not restrict entry or deny services based on collection of service charge. "Service charge shall not be collected by adding it along with the food bill and levying GST on the total amount," the guidelines stated.


DoCA had in May slammed restaurants for levying service charge, following complaints by consumers.

The was triggered by the numerous complaints the department had received through the national consumer helpline.

From April 2021 to July 2022, 537 complaints were lodged by consumers on levying the service charge. The major grievances include eateries making service charge compulsory, embarrassing consumers in case they resist paying service charge, adding service charge by some other name and withholding the fact that paying service charge is optional and voluntary.