If restaurateurs want to give higher wages to their staff, they should increase the prices of their offerings rather than fool consumers by charging a fee that looks like a government levy, he argued.
Lawyer Lalit Bhasin, who appeared for NRAI argued that service charge is an agreement between a restaurant management and its staff, hence it should be dealt with the authorities under the labour laws.
The bill’s subtotal was $49.50 with a $4.52 sales tax and then a service charge of 18% that brought the total to $62.93, which is Rs 5,225 approximately. The customer was charged $8.91 service charge, approximately Rs 739.
Justice Prathiba Singh, who passed the order, however made it clear that this was only an interim order and not a final one. The judge further more capped the levy of staff contribution to 10 percent of the bill and directed the restaurants to mention the same in their menu cards
Since the issuance of CCPA (Central Consumer Protection Authority) guidelines, the National Consumer Helpline (NCH) has received more than 4,000 complaints regarding service charges
Restaurants have been slapping a service charge of anything above 10 percent across the country, although there's no mandated levy, finds Local Circles study
Noida Restaurant Service Charge Fight: The latest news over service charges added to the bill in Noida’s restaurant is in the headlines these days. But what to do if a restaurant levy service charges? The Central Consumer Protection Authority (CCPA) on July 4 prohibited hotels and restaurants from adding a service charge by default or without the customer’s consent to food bills and allowed consumers to report violations. But National Restaurant Association of India filed a petition against these guidelines and Delhi High Court stayed them. But the debate has not ended yet. So, can a restaurant levy a service charge and is it mandatory for you to pay it? Watch to find out.
The single-judge order had allowed restaurants to continue charging service charge on food bills albeit with a caveat that the restaurants would prominently mention the same for the benefit of the consumers.
The National Restaurant Association of India (NRAI) had moved to Delhi High Court after the Central Consumer Protection Authority (CCPA) had issued a guideline to the industry earlier in July imposing a ban on levy service charges by the restaurants.
But there is a catch — the Rs 50 charge has been added to the prices of snacks, lunches and dinners.
In the letter to district collectors, the CCPA has written with the explicit instruction that charging a service fee in violation of the rules is an unfair business practise and affects the rights of consumers as a group, and that complaints of this nature must be given top priority.
In a statement, NRAI argued that service charge is a part of the owner’s discretion or decision regarding the total price payable by a customer with regard to sale or service of a product.
Amid rising consumer complaints, the Central Consumer Protection Authority (CCPA) on Monday barred hotels and restaurants from levying service charge automatically or by default in food bills and allowed customers to file complaints in case of violation.
Amid rising consumer complaints, the Central Consumer Protection Authority (CCPA) on July 4 barred hotels and restaurants from levying service charge automatically or by default in food bills and allowed customers to file complaints in case of violation.
Following increasing number of complaints, the authority released guidelines to combat unfair trade practices and violations of consumer rights.
On Thursday, the consumer affairs ministry said the government will soon come out with a legal framework to stop restaurants from imposing service charges on customers as the practice is "unfair".
The government will soon come out with a legal framework to stop restaurants levying service charge from customers as the practice is "unfair", Consumer Affairs Secretary Rohit Kumar Singh said on Thursday.
The Department of Consumer Affairs recently warned restaurants against collecting service charges by default. As restaurants strongly defend the move, the govt has convened a meeting on June 2 to discuss the issue.
The complainant was and advocate who had visited the restaurant for dinner with friends and was forced to pay 5 per cent service charge.
E-tickets, especially for the sleeper and air-conditioned coaches, will have a service charge of Rs 20 and Rs 40, respectively
This is not the first time the financial institutions have tussled with the government over the issue as banks have dodged tax notices regarding service taxes and GST since April 2018
Government says restaurants and hotels can no longer charge service charges from customers. But does the industry agree?
Service charge on hotel and restaurant bills is "totally voluntary" and not mandatory, Food and Consumer Affairs Minister Ram Vilas Paswan said today after the government approved guidelines on service charge.
Indian Railway Catering and Tourism Corporation‘s (IRCTC) plan to see itself listed on the stock exchange might hit a roadblock as the waiver of service charge by the government on online ticket booking could lead to losses making the stock unattractive, reports Economic Times.
Railway tickets booked online through Indian Railways‘ IRCTC portal will get marginally cheaper as they will no longer attract a service charge. Sleeper class tickets booked on IRCTC website are issued against a service charge of Rs 20 per transaction, while AC class tickets for Rs 40 approximately.