Dining Out To Get Cheaper? Government Might Crackdown On Unfair Imposition Of Service Charge

In its latest crackdown, the government is planning to issue an advisory to states asking them to check the unfair imposition of service charge on food and drinks bills, Food and Consumer Affairs Minister Ram Vilas Paswan said.

"Service charge does not exist. It is being wrongly charged. We have prepared an advisory on this issue. We have sent it to the PMO for approval," said Paswan.

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Once the advisory is approved by the Prime Minister¡¯s Office, it will be issued to all states and territories.

The advisory will also be useful for Voluntary Consumer Organisations (VCOs) fighting for consumer right, he said.

"No customer should be forced to pay the service charge. If customers want they can pay a tip to waiters or give their consent to levy the charge in the bill," the official said while explaining the nature of proposed advisory.

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The levying of service charge without seeking customer consent will be considered as unfair trade practice under the Consumer Protection Act, he added.

The minister said consumers should be informed about service charge in the menu card itself.

Earlier too on several occasions, Paswan spoke against the unfair imposition of service charge on food bill and had even sought an explanation from hotels and restaurants' bodies.