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Don’t force service charge on customers’: Following brawl at Noida mall, consumer affairs department writes to restaurant bodies

In April this year, the court said that the earlier order should not be shown on menu cards as it can “mislead consumers that service charge has been approved by the Court”.

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Don’t force service charge on customers’: Following brawl at Noida mall, consumer affairs department writes to restaurant bodies
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The Department of Consumer Affairs has written to Kabir Suri, the President of National Restaurant Association of India (NRAI), and Suresh Poddar, the President of Federation of Hotel and Restaurant Association of India (FHRAI), over the brawl that allegedly broke out between customers and restaurant staff in a Noida mall over a service charge of Rs 970 on Sunday.

The notice, issued on Tuesday by department secretary Rohit Kumar, stated that service charge is a discretionary charge and should not be “imposed forcefully on consumers, especially when consumers are dissatisfied with the service provided to them by the restaurant.”

A video of customers and staff purportedly hitting each other in Spectrum Mall in Noida’s Sector 75 was shared widely on social media Monday.

“I urge you to suitably advise the members of your association not to insist on levying a service charge on the consumers on a mandatory basis, especially when a request to remove it from the bill is raised by a consumer. You would agree that any such charge is in the nature of tips or gratuity, which a consumer may decide to pay voluntarily depending upon her/his satisfaction with the quality and service provided by the establishment,” the letter stated.

A case pertaining to guidelines on service charges is being heard before the Delhi High Court. Last year, the court had stayed the Central Consumer Protection Authority’s guidelines barring hotels and restaurants from levying service charge “automatically or by default” in the bill. In April this year, the court said that the earlier order should not be shown on menu cards as it can “mislead consumers that service charge has been approved by the Court”.

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Suri told The Indian Express that the body had taken note of the letter. A member of NRAI, who did not want to be named, said, “Service charge is distributed among the entire staff in most cases… don’t we pay convenience fees in railways, airports and taxis? It (service charge) is fundamentally the same thing.”

First published on: 21-06-2023 at 02:41 IST
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