The Consumer Protection Authority of India has banned the collection of service charges in hotels and restaurants. News from the BBC.
The ban comes in the wake of a number of allegations of forcing customers to pay service charges.
In the name of service charge, Indian restaurants used to charge 5 to 15 percent extra. But according to the new rules, restaurants will not be able to charge service charges on customers' bills.
The new guidelines also state that restaurants will not be allowed to offer extra bounties to shoppers in any name. Those who do not want to give a bounty, they can not be prevented from coming to the restaurant.
Bounties in restaurants have been discussed in India for years. Customers complained that the extra money that would be charged from them was not announced in advance.
In 2016, the Consumer Rights Department of the Central Government of India issued a directive. It said that customers will not have to pay any extra money except the price of menu card products and government duty.
The Consumer Rights Department says whether or not to give a bounty is a matter of the consumer's will or reluctance. Forcing customers to pay extra without permission is "illegal business activity."
Instead of doing this, the Indian government has pointed out the way to increase the fair wages of the workers and the prices of the products.
Last month, the government held a meeting with an association of Indian restaurant owners. The meeting was told that complaints were coming from customers that restaurants were being forced to pay extra in the name of service charges. Many times the amount is much higher. Customers are being harassed for not paying extra. Recently the number of such complaints from customers has increased a lot.
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