Service charge

Restaurants can continue to levy service charges until next hearing: Delhi HC

India

oi-Madhuri Adnal

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Posted: Thursday August 18th 2022, 03:01 PM [IST]

Google One India News

New Delhi, August 18: The Delhi High Court has said restaurants in the city can continue to collect service charges until the next hearing. The High Court had also issued a notice to catering bodies after the Central Consumer Protection Authority (CCPA) appealed against the July 20 order which suspended the former’s new guidelines preventing restaurants to add default service charges to food bills. .

The Central Consumer Protection Authority (CCPA), under the Ministry of Consumer Affairs, has issued guidelines to prevent unfair commercial practices and violation of consumer rights in relation to hotels and restaurants charging service, stating that the consumer may file a complaint with the National Consumer Helpline (NCH) against such practices.

The upholding of new guidelines from the country’s consumer watchdog on July 20 followed a provocative call from the National Restaurant Association of India (NRAI).

At the previous hearing, Judge Yashwant Varma said, “Don’t pay. Don’t enter the restaurant. It’s a matter of choice.” Granting the stay, the court also ordered that information regarding the levy of service charges be displayed on menu cards and also posted in such a way that customers are aware of such charges.

Delhi HC maintains guidelines prohibiting restaurants from charging service feesDelhi HC maintains guidelines prohibiting restaurants from charging service fees

Importantly, the court also clarified that service charges cannot be levied on takeout orders. The NRAI is greatly relieved by the passage of this order, as it has also had a direct negative impact on the human capital employed in commerce.

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Article first published: Thursday, August 18, 2022, 3:01 p.m. [IST]