Recently, the National Restaurant Association of India and the Federation of Hotel and Restaurant Associations of India challenged the July 4, 2022, guidelines of the Central Consumer Protection Authority in the Delhi High Court. The Authority had directed hotels and restaurants not to levy service charge on food bills. This issue has now become a legal bone of contention
The levying of service charge by hotels and restaurants has been a contentious issue. Instead of letting customers decide whether they want to pay it or not, the charges are being forced on them
The Central Consumer Protection Authority established under the Consumer Protection Act, 2019, has issued guidelines to prevent unfair trade practices and protect consumer interest with regard to levy of service charge in hotels and restaurants. Now, the courts are examining the confusion over the issue.