No service charge in hotels automatically

HYDERABAD: No hotels or restaurants can add service charge automatically or by default in the food bill, according to the guidelines issued by Central Consumer Protection Authority (CPA) of the Consumer Affairs Ministry.

This prevents unfair trade practices and violation of consumer rights with regard to levying of service charge in hotels and restaurants.

Consumers may lodge a complaint on the National Consumer Helpline (NCH) against the service charge.

Complaints can also be filed electronically through e-daakhil portal for speedy and effective redressal.

While this was the practice for all bars, restaurants, pubs, food joints and eateries, the consumers were given an option to ask for scrapping the same by a government order in 2017. The order said: "As per the approved guidelines on service charge, service charge is totally voluntary and not mandatory now. Hotels and restaurants should not decide how much service charge is to be paid by the customer and it should be left to the discretion of the customer."

This gave a respite to consumers. However, a lot of consumers, either because they are unmindful of the fact that a service charge could be levied or because the finer detail escape their eye, would go ahead making payment. The service charge levied usually runs from 10 to 15 percent of the total bill amount, excluding GST.

Now, the CPA's order saves a lot of money from the loot, wittingly or unwittingly.