Amid rising consumer complaints, the Central Consumer Protection Authority (CCPA) has on Monday reportedly barred hotels and restaurants from levying service charges automatically or by default in food bills and allowed customers to file complaints in case of violation. The CCPA has issued guidelines for preventing unfair trade practices and violation of consumer rights with regards to levying of service charge. It is understood that restaurants and hotels generally levy a service charge of 10 per cent on the food bill. Now no hotel and restaurant can collect service charges even by any other name. This is a step in the right direction since a 10 per cent service charge on the food bill can work out to a substantial amount. Of course the consumer can tip the waiter, which is voluntary. A tip is towards hospitality received and depending on the quality of service the consumer can decide as to whether to pay a tip or not as also the amount. On the flip side, without the service charges, there is every possibility of hotels and restaurants increasing the price of the food and beverages they offer to the consumer.
