Service charge at restaurants is voluntary, clarifies Centre
The government directed states to advise hotels and restaurants to display the notification at their premises.
The Department of Consumer Affairs on Monday said consumers have discretion over the payment of service charges at restaurants and hotels. In a notification to state governments, the department directed local administrations to “advise hotels and restaurants to display information” stating that service charges are voluntary.
The statement said consumers have the right to refrain from paying the charge if they are not satisfied with the service. The notification follows a rise in complaints against hotels and restaurants allegedly adding a service component to their bills. The Department of Consumer Affairs asked the Hotel Association of India for its view on the practice, which in turn submitted a reply stating that the charge was voluntary, The Times of India reported.