Ensure immediate implementation of service charge guidelines by hotels, restaurants: CCPA to district collectors

New Delhi, July 9

The Central Consumer Protection Authority (CCPA) has directed district collectors to ensure complete enforcement of guidelines issued with regard to charging of service tax by hotels and restaurants.

CCPA Chief Commissioner Nidhi Khare today also clarified that the guidelines are “not advisory in nature and are fully enforceable by law.”

“The guidelines have been issued under Section 18(2)(l) of the Consumer Protection Act, 2019, which empowers the CCPA to issue necessary guidelines to prevent unfair trade practices and protect consumers’ interest,” according to an official statement.

It said that upon receiving related complaints, the district collector may conduct investigation pertaining to violation of the guidelines and submit the report to the Authority within 15 days.

The CCPA has written to chief secretaries of all states/UTs and district collectors to arrange wide publicity of the guidelines along with its immediate implementation for protection of consumer interest, it said.

“The letter gives clear direction that levying of service charge is in violation to the guidelines and constitutes unfair trade practice wherein affecting rights of consumers as a class, and cognizance of such complaints must be taken on priority,” officials said.

A number of consumers have registered their complaint on the National Consumer Helpline with regard to levying of service charge.

From July 5 to July 8,  that is after the new guidelines were issued by CCPA, 85 complaints have been registered on NCH. The top five cities of service charge complaints are New Delhi, Bangalore, Mumbai, Pune and Ghaziabad with 18, 15, 11, 4 and 3 complaints, respectively.

If any consumer finds that a hotel or restaurant is levying service charge in violation to the guidelines, a consumer may make a request to the concerned hotel or restaurant to remove service charge from the bill amount. The consumer can also lodge a complaint on the National Consumer Helpline (NCH), which works as an alternate dispute redressal mechanism at the pre-litigation level by calling 1915 or through the NCH mobile app.

The consumer can also file a complaint against unfair trade practice with the Consumer Commission.