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Home Jharkhand

Despite CCPA’s order, restaurants in Ranchi continue to add service charge on bills

Lagatar News by Lagatar News
July 11, 2022
in Jharkhand
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CONRAD DIAS

 

Ranchi, July 11: Hotel and restaurant service charges cannot be added to invoices as per India’s consumer protection agency’s (CCPA) recent order. However, it seems like many restaurants in the city are still printing the service charges on the invoices.

In a recent incident that took place in a popular restro-bar in Lalpur, a service charge worth Rs. 48 was added to a bill of Rs. 960.  It seems like since many people are unaware of the new rule these restaurants are making the most of it to extract extra money in the form of service charges.

Lagatar24.com contacted the restaurant and spoke to the concerned person where it seemed like he was completely aware of the new law by CCPA and agreed with it. However, when asked why his restaurant is charging a service charge on the invoice, he said it might be a mistake by the billing counter and would rectify it.

Notably, the new rule by CCPA is being followed by the majority of restaurants and hotels in the city like Capitol Hill and Capitol Residency. However, still, few restaurants are yet printing the service charge amount on the bill.

The order was released on July 4. The decision to impose the restriction, according to the authority, was made in response to an increase in customer complaints about having to pay the service fee.

A list of updated rules in this regard has been published by CCPA. The customer’s decision to pay the fee or a gratuity is entirely optional; neither action may be required of them. The department of consumer affairs (DMCA) had stated that it will soon create a framework to ensure regulation of service charges and ensure that customers do not encounter any issues with the same.

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