Delhi HC imposes ₹1 lakh cost on restaurant associations in service charge case
The court says the costs will be paid to the Department of Consumer Affairs, Government of India.
The court says the costs will be paid to the Department of Consumer Affairs, Government of India.
The National Restaurant Association of India (NRAI) had challenged the guidelines issued by CCPA which barred restaurants from levying service charges.
The Central Consumer Protection Authority (CCPA) had earlier barred hotels or restaurants for levying service charge in the food bill.
No hotel or restaurant shall force a consumer to pay service charge, says CCPA.
Restaurant associations say that when service charge is mentioned on the menu, it involves an implied consent of the consumer to pay the charge.
Information regarding the amount of service charge is mentioned by restaurants on their menu cards, says NRAI.
The Department of Consumer Affairs has called the National Restaurants Association of India on June 2 to discuss consumer complaints over service charge.