{"id":269566,"date":"2022-07-05T11:30:37","date_gmt":"2022-07-05T06:00:37","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=269566"},"modified":"2022-07-05T11:28:11","modified_gmt":"2022-07-05T05:58:11","slug":"ccpa-issues-guidelines-to-prohibit-automatic-levy-of-service-charge-in-hotels-and-restaurants","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2022\/07\/05\/ccpa-issues-guidelines-to-prohibit-automatic-levy-of-service-charge-in-hotels-and-restaurants\/","title":{"rendered":"CCPA issues Guidelines to prohibit automatic levy of service charge in hotels and restaurants"},"content":{"rendered":"<p style=\"text-align: justify;\">On 04-07-2022, the Central Consumer Protection Authority (&#8216;CCPA&#8217;) has issued Guidelines to prevent unfair trade practices and to protect the consumer interest with regard to levy of service charge in hotels and restaurants.<\/p>\n<p style=\"text-align: justify;\"><strong>\u00a0<\/strong><\/p>\n<h4 style=\"text-align: justify;\">Key points:<\/h4>\n<ul style=\"text-align: justify;\">\n<li style=\"text-align: justify;\">No hotel or restaurant shall add service charge automatically or by default in the bill.<\/li>\n<li style=\"text-align: justify;\">Service charge shall not be collected from consumers by any other name.<\/li>\n<li style=\"text-align: justify;\">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&#8217;s discretion.<\/li>\n<li style=\"text-align: justify;\">No restriction on entry or provision of services based on collection of service charge shall be imposed on consumers.<\/li>\n<li style=\"text-align: justify;\">Service charge shall not be collected by adding it along with the food bill and levying GST on the total amount.<\/li>\n<li style=\"text-align: justify;\">If a hotel or restaurant is found levying service charge, a consumer may: &#8211;<\/li>\n<\/ul>\n<ol style=\"text-align: justify;\">\n<li style=\"list-style-type: none;\">\n<ol>\n<li style=\"text-align: justify;\">Make a request to the concerned hotel or restaurant to remove service charge from the bill amount.<\/li>\n<li style=\"text-align: justify;\">Lodge a complaint on the National Consumer Helpline (NCH).<\/li>\n<li style=\"text-align: justify;\">File a complaint against unfair trade practice with the Consumer Commission.<\/li>\n<li>The Complaint can also be filed electronically through e-daakhil portal <a href=\"http:\/\/www.e-daakhil.nic.in\" target=\"_blank\" rel=\"noopener\">www.e-daakhil.nic.in<\/a> for its speedy and effective redressal.<\/li>\n<li style=\"text-align: justify;\">Submit a complaint to the District Collector of the concerned district for investigation and subsequent proceeding by the CCPA. The complaint may also be sent to the CCPA by e-mail at <a href=\"mailto:com-ccpa@nic.in\">com-ccpa@nic.in<\/a>.<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<p style=\"text-align: justify;\">\n<p style=\"text-align: justify;\">\n","protected":false},"excerpt":{"rendered":"<p>On 04-07-2022, the Central Consumer Protection Authority (&#8216;CCPA&#8217;) has issued Guidelines to prevent unfair trade practices and to protect the consumer interest <\/p>\n","protected":false},"author":8808,"featured_media":269567,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4,1193],"tags":[50014,14601,42860,3362,2591,33631],"class_list":["post-269566","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legislationupdates","category-notifications","tag-ccpa","tag-consumer","tag-consumer-commission","tag-hotels","tag-Interest","tag-service-charge"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>CCPA issues Guidelines to prohibit automatic levy of service charge in hotels and restaurants | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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against 27 restaurants; automatic service charge deemed illegal, penalties imposed to curb unfair trade practices.","rel":"","context":"In &quot;Hot Off The Press&quot;","block_context":{"text":"Hot Off The Press","link":"https:\/\/www.scconline.com\/blog\/post\/category\/news\/hot_off_the_press\/"},"img":{"alt_text":"Mandatory Service Charge","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2026\/01\/Mandatory-Service-Charge.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2026\/01\/Mandatory-Service-Charge.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2026\/01\/Mandatory-Service-Charge.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2026\/01\/Mandatory-Service-Charge.webp?resize=700%2C400&ssl=1 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This would clearly constitute an unfair trade practice under Section 2(47) of the CPA, 2019 as the collection of service charge materially misleads the consumer with\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Delhi High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Delhi-High-Court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Delhi-High-Court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Delhi-High-Court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Delhi-High-Court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":270580,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/07\/23\/delhi-high-court-stays-ccpa-ruling-on-levying-service-charges-in-hotels-and-restaurants-as-an-unfair-trade-practice\/","url_meta":{"origin":269566,"position":3},"title":"Delhi High Court stays CCPA ruling on levying service charges in hotels and restaurants as an unfair trade practice","author":"Editor","date":"July 23, 2022","format":false,"excerpt":"Delhi High Court: Yashwant Varma, J. stayed the ruling passed in the form of guidelines by the Central Consumer Protection Authority (\u2018CCPA') vide order dated 04-07-2022 holding that the issue of whether the levy of service charge would amount to a restricted and unfair trade practice under Consumer Protection Act,\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Delhi High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/delhi_high_court-2.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/delhi_high_court-2.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/delhi_high_court-2.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/delhi_high_court-2.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/delhi_high_court-2.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":277944,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/11\/28\/the-tussle-of-service-charges-at-hotels-and-restaurants-pro-or-anti-consumers\/","url_meta":{"origin":269566,"position":4},"title":"The Tussle of Service Charges at Hotels and Restaurants: Pro or Anti Consumers","author":"Bhumika Indulia","date":"November 28, 2022","format":false,"excerpt":"Ashok R. Patil*","rel":"","context":"In &quot;OP. ED.&quot;","block_context":{"text":"OP. 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