NEW DELHI: The government on Monday said that restaurants billing “service charges” in addition to taxes is optional and the consumer has discretion to pay “service charge” or not.

The move came in the wake of a number of complaints that hotels and restaurants are following the practice of charging "service charge" in the range of 5-20 per cent, in lieu of tips, which a consumer is forced to pay irrespective of the kind of service provided to him.

Following the complaints the department of Consumer Affairs called for clarification from the Hotel Association of India (HAI), which have replied that the service charge is completely discretionary and should a customer be dissatisfied with the dining experience he or she can have it waived off. Therefore, it is deemed to be accepted voluntarily.

The Consumer Protection Act, 1986 provides that a trade practice which, for the purpose of promoting the sale, use or the supply of any goods or for the provision of any service, adopts any unfair method or deceptive practice, is to be treated as an unfair trade practice and that a consumer can make a complaint to the appropriate consumer forum established under the Act against such unfair trade practices.

WHAT NOW?

• People have the right to decide whether or not to pay the charge and determine the amount in case they volunteer to give.
• One can refuse to pay the service charge on their restaurant or café bill, if unhappy with the food or experience.
• Restaurants and hotels have to put up notices “at an appropriate place” on their premises that “service charges are discretionary”.

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