also the founder of Consumer Online Foundation and consumer protection portal 'jagograhakjago.
also the founder of Consumer Online Foundation and consumer protection portal 'jagograhakjago.com' said, "It should be done away with like we made MRP inclusive of all taxes. The menu cards should also carry a fixed price based on quantity of food and star category of restaurant." "Government can allow competition based on quality, quantity and location. Consumers cannot be charged service charge, it is unfair trade practice," he said, adding, "State governments must bring an ordinance to make it mandatory not to take service charge over and above the price." Similarly, Mahapatra said, "The Centre's approach in making service charge an option is wrong. They are supposed to make laws which are binding and not give options." As per the government notification, hotels and restaurants are required to put up a notice that it is the sole discretion of a consumer to pay the service charge or have it waived.
"The Department of Consumer Affairs has asked state governments to sensitize companies, hotels and restaurants regarding provisions of the Consumer Protection Act, and also advise them to disseminate information through display at the appropriate place in hotels/restaurants that 'service charges' are discretionary/ voluntary and a consumer dissatisfied with services can have it waived off," the notification said.
In the absence of a clear law, the experts said that one can still approach a consumer forum against restaurants refusing to waive off the service charge and urged consumers to not hesitate in filing complaint in this regard.
"Restaurants can be penalised if they do not put up notice as per government direction. Consumer Protection Act 1986 protects you from any deficiency in services," Pattjoshi said.
Asking consumers to get an FIR lodged against such restaurants, Misra said, "In case a restaurant charges service charge, pay the same and report the matter to the nearest police station and get an FIR. Once several consumers do that then they can claim compensation from the restaurant as it is deemed to be unfair after the Government notification." He further said, "Under Consumer Protection Act 1986 it is deemed as Unfair Trade Practice as it charges more than the printed price. However, clarity from the Centre and a strong law with stringent punishment for overcharging is desirable." The Centre's notification has said that it received several complaints from consumers alleging that restaurants are taking 'service charge' in lieu of tips, which they are forced to pay irrespective of the kind of service provided.
It had said it is the discretion of the consumer and no restaurant/hotel can force anyone to pay service charge.
According to Consumer Protection Act, any trade practice for sale or service that adopts unfair or deceptive method falls under the category of 'unfair trade practice' and the law provides for redressal of such grievances.
(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)
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