NEW DELHI: Following a warning from the government to restaurants on collecting service charge from consumers by default, the National Restaurant Association of India said the levy of service charge is a matter of individual policy.
“There is no illegality in levying such a charge,” it said. The Department of Consumer Affairs (DoCA) on Monday said it has scheduled a meeting on June 2 with NRAI to discuss the issues pertaining to service charge levied by restaurants. Guidelines issued by DoCA note that entry of a customer in a restaurant can’t itself be construed as a consent to pay service charge.
The meeting comes as DoCA said it’s taking notice of a number of media reports as well as grievances registered by consumers on the National Consumer Helpline (NCH). Service charge at restaurants is a fee collected to pay for services such as air conditioning, ambience, serving food, etc.
In a letter written by Rohit Kumar Singh, secretary, Department of Consumer Affairs, to the president of NRAI, it has pointed out ‘that the restaurants and eateries are collecting service charge from consumers by default, even as collection of any such charge is voluntary and at the discretion of consumers.’
The association said information regarding the amount of service charge is mentioned by restaurants on their menu cards or displayed on the premises, so customers are aware of this charge before availing the services. “It becomes an agreement between the parties, and is not an unfair trade practice,” it said.