Representative image
NEW DELHI: The Central Consumer Protection Authority (CCPA) has imposed a Rs 30,000 fine on a restaurant in Patna for collecting service charge from a customer in violation of guidelines. The authority’s order – monetary penalty, direction to refund service charge collected and instructions to immediately stop the practice – may serve as a reference point for similar consumer complaints in the future.This comes after the March 28 Delhi HC order which held that all restaurants must adhere to guidelines issued by CCPA on service charge. The court also made it clear that any violation of guidelines would invite appropriate action against erring establishments.CCPA in its guidelines issued on July 4, 2022, had specified that no hotel or restaurant will add service charge automatically or by default to the bill and that this should not be collected by adding it along with the food bill and GST on the total amount. Service charge is voluntary and this must be informed to customers.The instant case was taken up CCPA after Ravi Nandan Kumar filed a complaint with the National Consumer Helpline in April over Cafe Blue Bottle levying a service charge of Rs 801 in addition to GST. CCPA carried out an examination of the veracity of the claim since such a practice would have impacted a ‘class’ of customers.In response, the restaurant claimed that service charge was optional and that if a customer declines to pay, it is removed from the bill. It also submitted that a refund of Rs 591 would be made to the customer.An investigation found the restaurant had offered a credit note of Rs 591 (minus discount of Rs 210), without the customer’s consent, which was “not a valid substitute for monetary reimbursement”. The authority concluded that the restaurant used a software based bill generation system whereby service charge would have been automatically generated for all customers. It noted the restaurant didn’t submit the number of bills with included service charge but removed or refunded subsequently to clear shadows of doubts.E-tailers fined for selling walkie talkiesIn two other orders, CCPA imposed a fine of Rs 1 lakh each on Jiomart and Chimiya for selling walkie talkies without necessary disclosures. They have also been directed to remove advertisements and ensure that in future no product requiring statutory approval or certification is listed or sold on platforms without compliance of law.
