Service Charge in Restaurants: Service charges on hotel and restaurant bills are illegal; call this number if payment is demanded..

Service Charge in Restaurants: Everyone enjoys dining out with family or friends on weekends, but the mood can often be spoiled upon seeing the restaurant bill. A major reason for this is the service charge surreptitiously added to the total.

If you, too, are often annoyed by seeing a service charge on your restaurant bill, this information is crucial for you. The Central Consumer Protection Authority (CCPA) has clarified that no hotel or restaurant can automatically add a service charge to the food bill; compelling a customer to pay it is entirely unlawful.

CCPA Cracks Down on 41 Restaurants, Including 'Chaayos'
The government has now shifted into full action mode against restaurants that unfairly burden consumers' pockets. Based on numerous complaints received via the National Consumer Helpline, the CCPA has taken *suo motu* cognizance and initiated strict action against 41 prominent restaurants across the country. Customers submitted bills as evidence showing that service charges had been levied without their consent.

CCPA Orders Refund and Imposes Fine
In a case involving a blatant violation of rules, the CCPA issued an order against the famous brand 'Chaayos' (Sunshine Teahouse Pvt. Ltd.), imposing a hefty fine of ₹50,000. Additionally, the authority directed the company to refund the illegally collected service charge to the aggrieved consumer, along with interest. Chaayos was also ordered to update the billing software across all its outlets to ensure that service charges are never automatically added to customer bills in the future. Legal proceedings regarding the remaining 40 restaurants are also proceeding rapidly.

Guidelines Regarding Service Charges
According to official guidelines issued by the Central Government on July 4, 2022, very strict rules regarding service charges are in effect across the country. According to this, paying a service charge is entirely at the customer's discretion; it is not mandatory in any way. If a consumer refuses to pay the service charge, the restaurant management cannot deny them entry or refuse to serve them food. Doing so would be considered a violation of consumer rights. Furthermore, restaurants are required to clearly state on their menu cards or display boards that the service charge is voluntary.

**File a complaint immediately if you spot an error in the bill**
If, the next time you visit a restaurant, you notice a service charge added to your bill without your consent, you can lodge a complaint. You can do this by calling the National Consumer Helpline's official toll-free number, 1915. Additionally, you can file an online complaint via the Ministry of Consumer Affairs' official NCH platform and app by uploading a photo of the bill. If the establishment is found guilty following an investigation, strict legal action is taken against the hotel or restaurant, and heavy fines are imposed. Therefore, be an informed consumer and speak up for your rights.

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