Lagatar24 Desk
New Delhi, July 20: The Central Consumer Protection Authority (CCPA) recommendations stating that hotels and restaurants should not automatically or by default add service charges to food bills were stayed by the Delhi High Court on Wednesday.
However, Justice Yashwant Varma, a single-judge, opined that the menus should make it clear that the particular eatery imposes such fees.
The restaurants’ promise that takeout meal orders won’t be subject to a service charge was also noted by the court.
“The matter requires consideration, until the next date of listing, the directions as contained in para 7 for the impugned communication/guidelines of July shall remain stayed. The members of the petitioner association shall ensure that levy of service charge in addition and the obligation of customers to pay the same is duly and prominently displayed on the menu or other place where it may be deemed to be expedient. The members of the petitioner associations further undertake not to levy or include service charge on any takeaway orders,” the order said.
The matter was scheduled for hearing on November 25 after the court requested responses from the respondent.
“If you don’t want to pay don’t enter the restaurant. It is essentially a matter of choice,” the Court orally remarked.
The National Restaurant Association of India (NRAI) filed a petition challenging the CCPA’s guidelines, and that petition resulted in the decision.
In order to stop unfair business practises and violations of consumer rights, the CCPA had issued guidelines.
According to the argument put up by NRAI, neither a statute nor an amendment to an existing law has been passed that would make the collection of a service charge illegal.
“In the absence of due authentication and promulgation of the guidelines, the contents thereof cannot be treated as an order of the Government,” the plea stated.
