There is good news for all those who love to eat out as the government has issued a statement which says that the service fee charged by the restaurants is optional and it’s on the discretion of the customer, whether to pay or not.
A clarification has been made by the government that service charge which is charged between 5-20%, is levied by the restaurants in the bills instead of tip is not a compulsion for the customer to pay. So if you are not happy with the service of the restaurant, you can straightaway refuse to pay the service charge.
The Dept. of Consumer Affairs has also said that adding service charge in the bill is a violation of fair trade practices.
Ram Vilas Paswan, the Consumer Affairs and Food Minister, made a tweet, “Restaruants are billing service charges in addition to taxes. Service charge is optional . Consumer has a discretion to pay or not.”
Restaruants are billing service charges in addition to taxes. Service charge is optional . Consumer has a discretion to pay or not.
— Ram Vilas Paswan (@irvpaswan) January 2, 2017
The Hotel Association of India has said,
“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.”
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Here is the complete statement:
“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. 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. In this context, the department of Consumer Affairs, Central Government has called for clarification from the Hotel Association of India, which have 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 Department of Consumer Affairs has asked the State Governments to sensitize the companies, hotels and restaurants in the states regarding aforementioned provisions of the Consumer Protection Act, 1986 and also to advise the Hotels/Restaurants to disseminate information through display at the appropriate place in the hotels/restaurants that the ‘service charges’ are discretionary/voluntary and a consumer dissatisfied with the services can have it waived off.”
So now you know that no one can force you to pay the service charge if you are not contended!! So enjoy dining out! Happy eating!
