Restaurant owners oppose CCPA service charge guidelines calling it ‘illegal’ 

The restaurant owners asserted that service charge was not levied discreetly as it is mentioned on the menu and the bill as well.

Published: 05th July 2022 08:38 AM  |   Last Updated: 05th July 2022 08:38 AM   |  A+A-


Image used for representational purpose only. (Photo | EPS)

By Express News Service

NEW DELHI: Several restaurant and bar owners in Delhi on Monday opposed the Central Consumer Protection Authority (CCPA) guidelines barring them from levying service charges automatically or by default on food bills, saying it is “completely illegal and baseless”.

The restaurant owners asserted that the service charge was not levied discreetly as it is mentioned on the menu and the bill as well. The CCPA on Monday issued guidelines for preventing unfair trade practices and violation of consumer rights with regard to levying of service charges.

“No hotels or restaurants shall add service charge automatically or by default in the bill,” the CCPA said in the guidelines. There should not be any collection of service charge by any other name, it added.
Denouncing the guidelines, Manpreet Singh, treasurer of the National Restaurants Association of India (NRAI), said the government could not tell bar and restaurant owners how to run their businesses.

He claimed that customers are told in advance about the service charge and it is mentioned on the menu. Pamphlets and posters are also usually put up at the restaurants, Singh said. 

Priyank Sukhija, promoter of First Fiddle Restaurants, which operates bars and fine-dine restaurants such as Lord of the Drinks and Tamasha, said there is no basis for the guidelines issued by the CCPA. “There is no basis for what they are saying. It is completely against the law. It is a mere guideline, and if required, we will fight it,” he said.


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