HYDERABAD: The new trend of retailers levying service charge on customers for digital transactions is a violation of consumer rights and will work against the Digital India drive of the Government of India, opine consumer rights activists.
With demonetisation being announced in November last year, many retailers in city began levying service charge for digital transactions. Be it payment using a Point of Sales machine or through digital payment apps, the customers are at losing end.
“This is unethical,” says N Srinivas, chairman, Confederation of All Telangana Consumer Organisation the rules regarding service charge are defined only for restaurants. If a person is being charged above MRP rate then it is illegal, he adds.
“Even banks have started the practice of service charge. There is no written order from the government asking the banks to do so. The banks are now passing on the burden of digitisation to the consumer. The retailer too is doing the same,” says Srinivas.
“As per the commercial tax rules only the tax should be collected, other than that not even an extra paise should not be collected. The argument that the banks are charging so we are charging is not valid as banks used to levy transaction charges on PoS machines even before demonetisation,” says Srinivas. The charges being levied by banks and the retailers are encouraging non-banking transactions, which in turn, encourages black money, he added.
No complaints yet
However, so far consumer rights forums are yet to receive any complaint. “People do not know where to go. In the state, out of 12 only two consumer rights forums are functional,” laments Srinivas. However, the issue can be taken up suo motto with the consumer affairs department, he adds.
“This a violation of section 418 and section 420 of IPC as its unfair trade practice. No one has given the retailer permission to charge extra money,” says Vijay Gopal, an anti corruption activist who recently won a case against Inox for dual MRP charges.