Eateries 'forcing' consumers to pay service charge: Centre calls meet

New Delhi, May 23

The Department of Consumer Affairs (DoCA) has called a meeting with the National Restaurant Association of India to discuss the issues arising out of service charge levied by restaurants, reiterating that restaurants “force” such charges on consumers. The meeting is scheduled for June 2.

Under scanner

The department will examine the issue with closer scrutiny and detail. Rohit Kumar Singh, Consumer Affairs Secretary

Officials say the move comes following media reports and grievances registered by consumers on the National Consumer Helpline (NCH). Consumer Affairs Secretary Rohit Kumar Singh has written to the National Restaurant Association of India, stating that consumers are being forced to pay service charge “often fixed at arbitrarily high rates by restaurants”.

“Consumers are being misled on the legality of such charges and harassed by restaurants when they make a request for removing such charges from the bill amount.

“Since this issue impacts consumers at large and has a significant ramification on the rights of consumers, the department construed it necessary to examine it with closer scrutiny and detail,” he wrote. The June 2 meeting will discuss complaints such as restaurants claiming that service charge is compulsory, service charge levied in the guise of some other fee or charge, consumers not told that service charge is optional and embarrassing consumers in case they refuse to pay service charge.

The officials said the department had, in 2017, issued guidelines, according to which a customer’s entry into a restaurant cannot be construed as a consent to pay service charge. “Any restriction on the entry of consumers by way of forcing them to pay service charge as a condition to placing an order amounts to ‘restrictive trade practice’ under the Consumer Protection Act,” the officials said.

“Without express consent of the customer, it will amount to unfair trade practice under the Consumer Protection Act,” they added.