Collectors Told To Enforce New Rules On Hotel Service Charge

Collectors Told to Enforce New Rules on Hotel Service Charge

The Central Consumer Protection Authority (CCPA) has focused on district collectors to confirm enforcement of guidelines issued in regard to service charges by hotels and restaurants. On receiving grievances, the district collectors have been directed to inspect and submit the report to the CCPA within 15 days.

The CCPA has also printed to chief secretaries of all states and district collectors across India to establish wide publicity of the guidelines along with its immediate implementation for fortification of consumer interest, the department of consumer affairs (DMCA) held in a note.

Last week, CCPA ordered restaurants and hotels to evidently inform consumers that service charge is voluntary, optional, and at the consumer’s decision, and they can also not restrict entry or disagree services based on a collection of service charge. ,” the guidelines stated that “Service charge should not be collected by calculating it along with the food bill and imposing GST on the total amount.

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