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BW Businessworld

Government Issues Advisory On Service Charges, Calls It Discretionary

It also aims to advise the hotels/restaurants to disseminate information through a display at the appropriate place in the hotel/restaurants that the “service charges” are discretionary/voluntary and a consumer dissatisfied with the service can have it waived off

Photo Credit : Reuters

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The Ministry of Consumer Affairs, Food and Public Distribution has issued an advisory to all the State Governments/UTs to sensitise the companies, hotels and restaurants in the state regarding the relevant provisions of the Consumer Protection Act, 1986 on unfair trade practices.

It also aims to advise the hotels/restaurants to disseminate information through a display at the appropriate place in the hotel/restaurants that the “service charges” are discretionary/voluntary and a consumer dissatisfied with the service can have it waived off.

163 complaints related to service charges were received at National Consumer Helpline during April 2016 to February 2017.

Under the provisions of the Consumer Protection Act, 1986, a three tier quasi-judicial mechanism, called Consumer Fora, has been set up at the District, State and National levels to provide for simple and inexpensive justice to consumer disputes. The Act further provides that a trade practice which, for the purpose of promoting the sale, use or the supply of any goods or for the provision of any service, adopts any unfair method or deceptive practice, is to be treated as an unfair trade practice.


Tags assigned to this article:
hospitality Service Charges state governments consumer