1 month ago

CCPA Cracks Down on Restaurants for Automatic Service Charges

CCPA Cracks Down on Restaurants for Automatic Service Charges
CCPA cracks down on restaurants for charging service charge automatically · thehansindia.com

The Central Consumer Protection Authority (CCPA) in India is taking action against restaurants that automatically add a service charge to customers' bills.

This practice is seen as unfair because customers should have the choice to pay the service charge or not.

The CCPA has penalized several restaurants, including Chaayos and Barbeque Nation, for adding the charge without asking customers first.

Union Minister Pralhad Joshi has emphasized that service charge should be voluntary and not forced.

Customers can complain if they find the charge added to their bills by calling the National Consumer Helpline at 1915.

The CCPA wants restaurants to be transparent and respect consumer rights.

Key facts

Action Initiated By
Central Consumer Protection Authority (CCPA)
Number of Restaurants Targeted
41
Notable Restaurants Penalized
Chaayos, Barbeque Nation, L’Opera French Bakery Private Limited
Consumer Helpline Number
1915
Union Minister for Consumer Affairs
Pralhad Joshi

Quotes

Central Consumer Protection Authority

Regulatory body

“Service charge is something customers may choose to give out of appreciation for excellent service. Forcing customers to pay it or adding it to the bill by default is unacceptable and will not be tolerated.”
thehansindia.com
“Service charge is a matter of customer discretion. Restaurants cannot exert pressure on customers or compel them to pay it.”
thehansindia.com

Sources

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