The new guidelines to prevent unfair trade practices-The Hindu-13/072022

The Central Consumer Protection Authority (CCPA) announced five guidelines to prevent unfair trade practices and to protect consumer interests regarding the levy of service charges in hotels and restaurants.

Detail of new Guideline:

Hotels or restaurants are prohibited from levying extra charges, they are not allowed to force service charges, and must inform the consumers that service charges are voluntary, optional, and at their discretion. Hotels and restaurants are no longer allowed to restrict entry or services based on the collection of service charges. Hotels cannot add service charges to their bills and charge GST on the total. Any tip, donation, token, gratuity, etc. is no longer permitted to be charged and shall be considered as a separate transaction between the consumer and the staff of the hotel and restaurant.