PANAJI
The next time you go to a fine-dining restaurant and inadvertently pay more for what you consume than what is stated on the menu card because the billing includes a ‘service charge’, you could sue the restaurant in consumer courts.
Mapusa-based prominent consumer rights NGO GOACAN has flagged this practice of restaurants levying a ‘service charge’ commonly mistaken for a waiter’s tip.
Citing a recent judgment of the Delhi High Court, GOACAN has said that this practice of adding a ‘service charge’ as a percentage of the aggregate bill of a customer is illegal and a complaint can be filed before the relevant consumer forum.
It said the Delhi High Court judgment clearly states that no restaurant can force the imposition of a ‘service charge’.
“It is a matter of choice for the client. It can only be voluntary. Forcing it is a violation of the Consumer Protection Act 2019,” GOACAN said.
The Delhi High Court has said that to ensure consumer rights and fairness, and in accordance with the guidelines of the Consumer Protection Authority, restaurants or hotels cannot, as a matter of right, collect service charges from clients.
“Collecting such fees is an unfair practice,” the NGO said and urged people who are charged such a ‘service charge’ by restaurants and hotels in Goa to complain to them on their email ID: [email protected], for guidance.
Many businesses automatically add a ‘service charge’ to the bill in the guise of covering staff costs and incentives. However, there is no way to know whether it goes to the intended person in reality.
A ‘tip’, on the other hand, is usually paid directly to the service waiter, sometimes a hefty one, when customers are exceptionally satisfied with the service rendered. It is either pocketed by the concerned waiter or shared with colleagues.
