customers There is a very important news for restaurant owners who charge service charges. Along with this, this news is also very important for those people who often go to eat in restaurants with their family and friends. In fact, the Central Consumer Protection Authority (CCPA) has taken major action by taking suo motu cognizance against a total of 27 restaurants that are charging mandatory service charge in violation of the law. CCPA had given this information on Saturday. These restaurants have been slapped with a hefty fine of up to Rs 50,000 and have been asked to refund the money charged as service charge to customers and make necessary changes in their billing system.
Restaurants cannot compulsorily charge service charges from customers.
Let us tell you that charging service charge compulsorily from customers in restaurants has been declared an unfair trade practice. CCPA has taken this action on the basis of complaints from consumers on the government helpline number. According to an official statement, CCPA has taken action against 27 restaurants located across the country. These restaurants violated the rights of consumers and essentially adopted unfair trade practices like charging service charge, which comes under Section 2(47) of the Consumer Protection Act, 2019.
Action also taken against restaurants in Patna and Mumbai
Investigation revealed that several restaurants, including Café Blue Bottle, Patna and China Gate Restaurant Pvt Ltd (Bora Bora), Mumbai. These restaurants were automatically adding 10 percent service charge to their bills. CCPA said it is closely monitoring the complaints received on the National Consumer Helpline regarding levy of service charge and will continue to take strict action against restaurants that do not follow the rules to protect the rights of customers and prevent unfair trade practices.
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