Chandigarh tells hotels: ‘Don’t add service charge in bill of customers, it’s voluntary’

“No hotel or restaurant shall force a consumer to pay service charge and shall clearly inform the consumer that service charge is voluntary, optional and at consumer’s discretion. And no restriction on entry or provision of services based on collection of service charge shall be imposed on consumers. Service charge shall not be collected by adding it along with the food bill and levying GST on the total amount,” Chandigarh administration specified.

“Further, It has also been noticed that some customers have been paying tips to the waiters in addition to service charges under the mistaken impression that service charge is a part of taxes,” the UT said in a statement.

As per the guidelines issued by Central Consumer Protection Authority (CCPA), under the Consumer Protection Act, 2019, Service Charge cannot be added in the bill involuntarily, without allowing consumers the choice or discretion to decide whether they want to pay such charge or not.

In public interest, Chandigarh administration also sent out a message to people.

What can be done if service charge is levied

In case a hotel or restaurant has imposed a service charge in violation of the guidelines, the administration said that a consumer may make a request to the hotel or restaurant concerned

to remove service charge from the bill amount. The person can lodge a complaint on the Consumer Helpline, which works as an alternative dispute redressal mechanism at the pre-litigation level, by dialling 1915 or WhatsApp number 8800001915 or through the NCH mobile app, the Chandigarh administration stated.

Consumers can file a complaint against unfair trade practice with the Consumer Commission, it was specified.

The complaint can also be filed through www.e-jagriti.gov.in for its speedy and effective redressal and submit a complaint to the CCPA by e-mail at com-ccpa@nic.in.

Besides, the aggrieved person can also approach the Department of Food & Supplies and Consumer Affairs and Legal Metrology, UT, Chandigarh, through helpline number 0172-2703956 or email at fcs-chd@nic.in for subsequent proceeding by the CCPA.