On 6th July in New Delhi, the National Restaurant Association of India recapitulated that service charge is not illegal and it is a matter of restaurant policy, where the government nor the authority can take or interfere in the decisions.
On Monday the Central Consumer Protection Authority (CCPA) banned hotels and restaurants from adding service charges automatically or by default to their food bill. They also added that no hotels or restaurants “shall force a consumer to pay the service charge and will inform the consumer that service charge is voluntary and optional and should be a consumer’s will”.
The National Restaurant Association of India (NRAI) said that even though these recapitulated guidelines there is an attempt to start a campaign against this restaurant industry practice without any legal basis. This is also relevant to states where extra charges are levied by many other industries, including some other government agencies. They also said that consumer is to be made aware of pricing and its components before placing an order and once the order is placed after being made aware of the terms and conditions, there is an irrevocable contract where no authority could interfere with the nature of a valid contract until and unless it is shown or there is a proof on any immoral or any unfair trade practice.
They Claimed that the levy of service charge is beneficial to the workmen as a class employed in the establishments, NRAI said, “Any move to the contrary would be detrimental to the interests of workers — and are against the labour-friendly opinion of the government.
Many customers complained about the same against the restaurants which levied the charge said Uttam Reddy of Rayalaseema Ruchulu never added service charge to the bills.
A café owner in Begumpet said that they did not levy any service charge, So there is no question of stopping. The decision of paying the tip or gratuity by a consumer, as does not arise merely by entering the restaurant or placing an order.
Due to all the above reasons, a service charge cannot be added to the bill involuntarily, or without allowing customers the choice or discretion to decide whether they want to pay such a charge or not.
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