In the wake of a number of complaints from consumers who are being forced to pay service charge in the range of 5-20 per cent, in lieu of tips, irrespective of the kind of service provided to them, the Department of Consumer Affairs (DCA) has said that service charges billed by restaurants are optional and could be paid only if the customer is satisfied with the service.
The DCA said that the Consumer Protection Act, 1986 provides that a trade practice which, for the purpose of promoting the sale, use or the supply of any goods or for the provision of any service, adopts any unfair method or deceptive practice, is to be treated as an unfair trade practice and a consumer can make a complaint to the appropriate consumer forum against such unfair trade practices.
In this regard, the department has asked the State Governments to sensitize the companies, hotels and restaurants in the states regarding aforementioned provisions of the Consumer Protection Act, 1986 and also asked to advise the hotels and restaurants to clearly display information at the appropriate place in the hotels and restaurants that the service charges are discretionary and that a customer dissatisfied with the services can have it waived off.