An upscale restaurant in Delhi has been fined Rs 1 lakh for automatically adding a service charge to customer bills, following a ruling by the National Consumer Disputes Redressal Commission (NCDRC).
Commission Orders Penalty for Unauthorised Service Charge
The NCDRC imposed the penalty after determining that the restaurant had included a service charge on bills without obtaining explicit consent from customers. The commission stated that such practices are not permitted unless customers are informed and agree to the charge in advance.
Details of the Case
The case was brought before the commission after a customer complained about the automatic addition of a service charge to their bill. The NCDRC reviewed the complaint and found that the restaurant had not provided customers with the option to decline the service charge, which is required under current guidelines.
Guidelines on Service Charges
According to the Central Consumer Protection Authority (CCPA) guidelines, restaurants are prohibited from automatically including service charges on bills. Customers must be informed and given the choice to pay or refuse the charge. The NCDRC referenced these guidelines in its decision, emphasizing the importance of consumer consent in such matters.
Outcome and Implications
The commission ordered the restaurant to pay a fine of Rs 1 lakh for violating consumer rights. The decision serves as a reminder to restaurants and hotels to adhere to the established guidelines regarding service charges and to ensure transparency with customers.
