Hotels or restaurants cannot compel the consumer to pay Service Charge. PRESS RELEASE, DATED 13-9-2017

          In order to stop levying Service Charge compulsorily from consumers without their consent, guidelines were issued on 21st April 2017

          To stop this unfair practice, hotels and restaurants have been asked either to leave the column of Service Charge blank or mention on the Bill that it is optional. It means that the consumer can pay the Service Charge if he or she wants

          In this regard State Governments were asked to issue directions to hotels and restaurants to display the message at an appropriate place that Service Charge is completely optional and if the consumer is not satisfied with the services of that hotel or restaurant, he or she is free not to pay Service Charge.

          Advertisements have also been released under ‘Jago Grahak Jago’ conveying the message among consumers that Service Charge is not mandatory but a tip which is fully a discretion of the consumer. Hotels or restaurants cannot compel the consumer to pay Service Charge

-Voluntary Consumer Organizations have also been asked to increase awareness and pick up some cases for exemplary remedial action