Government warns restaurants and hotels against levying unlawful service charges
Department of Consumer Affairs warns restaurants over undisclosed service charges on invoices, says violators will face action
The government has issued a warning to restaurants and hotels across India, stating that action will be taken against establishments that automatically add a service charge to customers' bills. This practice, deemed unlawful under Delhi High Court orders and Central Consumer Protection Authority (CCPA) guidelines, has led to a surge in complaints.
Secretary Nidhi Khare of the Department of Consumer Affairs clarified that tipping remains voluntary and emphasized that the issue arises when the service charge is automatically included in the invoice. Over 60 notices have already been issued to hotels and restaurants for this practice, with the department ready to take further action on any complaints received.
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