The Centre has called a meeting with the National Restaurants Association of India (NRAI) for 2 June next month, and has warned restaurants against levying extortionate service charges on customers. Service costs in restaurants often range from 5% to 10%.
The Centre has issued a warning to restaurants against charging service fees and has called a meeting with the National Restaurants Association of India (NRAI) on June 2 to discuss the issue.
Restaurants were collecting service costs by default, according to Rohit Kumar Singh, the consumer affairs department secretary, in a letter to NRAI. Service charges are discretionary and at the discretion of consumers, not mandated. “Because this issue affects consumers on a daily basis and has important implications for consumer rights, the department determined that it was necessary to investigate it further.”
The ministry of consumer affairs, food, and public distribution stated in a statement that consumers were being misled about the validity of such charges and harassed for asking for them to be removed from invoices.
“The discussion will cover restaurants making service charges mandatory; adding service charges to the bill in the guise of another fee or charge; concealing the fact that paying service charges is optional and voluntary; and embarrassing customers if they refuse to pay the service charge.”
