February 03, 2026 05:41 am (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
After Budget mayhem, bulls return: Sensex, Nifty stage sharp recovery | Dalai Lama wins first Grammy at 90 | Firing outside Rohit Shetty’s Mumbai home: 4 arrested, Bishnoi Gang link emerges | Female suicide attackers emerge at centre of deadly BLA assaults that rocked Pakistan’s Balochistan | Delhi blast: Probe reveals doctors' module planned attacks on global coffee chain | Begging bowl: Pakistan PM says he feels “ashamed” seeking loans abroad | Epstein Files shocker! Zohran Mamdani’s mother Mira Nair mentioned in latest tranche | Bill Gates contracted STD after sex with Russian women? Epstein Files make explosive, unverified claims | Big setback for Modi govt: Supreme Court stays controversial UGC Equity Regulations 2026 amid student protests | ‘Mother of all deals’: PM Modi says India–EU FTA is for 'ambitious India'

Bad Service: Consumers don't need to pay service fee at restaurants, says govt

| | Jan 02, 2017, at 11:17 pm
New Delhi, Jan 2 (IBNS): Giving a major relief to customers, the Indian government on Monday announced that if someone is unhappy with the service then he can refuse to pay the service fee which is tacked on the bill by several restaurants.

"A number of complaints from consumers have been received that hotels and restaurants are following the practice of charging 'service charge' in the range of 5-20%, in lieu of tips, which a consumer is forced to pay irrespective of the kind of service provided to him," read a government statement.

"The Consumer Protection Act, 1986 provides that a trade practice which, for the purpose of promoting the sale, use or the supply of any goods or for the provision of any service, adopts any unfair method or deceptive practice, is to be treated as an unfair trade practice and that a consumer can make a complaint to the appropriate consumer forum established under the Act against such unfair trade practices," it said.

"In this context, the department of Consumer Affairs, Central Government has called for clarification from the Hotel Association of India, which have replied that the service charge is completely discretionary and should a customer be dissatisfied with the dining experience he/she can have it waived off. Therefore, it is deemed to be accepted voluntarily," the government said.

The Department of Consumer Affairs has asked the State Governments to sensitize the companies, hotels and restaurants in the states regarding aforementioned provisions of the Consumer Protection Act, 1986 and also to advise the hotels or restaurants to disseminate information through display at the appropriate place in the hotels or restaurants that the 'service charges' are discretionary or voluntary and a consumer dissatisfied with the services can have it waived off.

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.