March 25, New Delhi — The Central Consumer Protection Authority (CCPA) has taken serious note of hotels and restaurants charging additional fees such as “LPG charges,” “gas surcharge,” and “fuel cost recovery” on consumer bills, deeming this practice an unfair trade practice under the Consumer Protection Act, 2019. Observing that such charges are being imposed by default to circumvent existing guidelines on service charges, the Authority has issued a fresh advisory under section 10 of the Consumer Protection Act 2019, directing that no such charges shall be levied automatically, and warning that violations may invite strict action.
Based on grievances received through the National Consumer Helpline (NCH) and media reports, the CCPA has observed that certain hotels and restaurants are levying such charges by default, in addition to the price of food and beverages displayed on the menu and applicable taxes. This practice results in a lack of transparency and imposes unjustified costs on consumers.
The current practice of levying “LPG charges” or similar charges is an attempt to circumvent the aforementioned guidelines by using a different nomenclature. The CCPA has clarified that input costs such as fuel, LPG, electricity, and other operational expenses are part of the cost of running a business and must be factored into the pricing of menu items. Recovering such costs through separate mandatory charges constitutes an unfair trade practice under Section 2(47) of the Act.
Through this advisory, the CCPA advises that:
No hotel or restaurant shall levy “LPG charges,” “gas charges,” or similar charges by default or automatically on the bill.
The price displayed on the menu shall be the final price, exclusive of applicable taxes.
Consumers shall not be misled or compelled to pay any additional charge that is not voluntary.
The advisory further reiterates that any such charges, regardless of nomenclature, are considered service charges or additional fees, and their default levy would constitute a violation of the CCPA Guidelines dated 04.07.2022, and may attract action under the Consumer Protection Act, 2019.
Consumer grievance redressal
Consumers who encounter such practices may:
Request the hotel or restaurant to remove the charge from the bill.
File a complaint on the National Consumer Helpline by calling 1915 or through the NCH mobile app.
File a complaint before the appropriate Consumer Commission through the e-Jagriti portal.
Submit a complaint to the District Collector or directly to the CCPA.
The CCPA is closely monitoring such practices across the country. Any violation, including the imposition of unfair or unauthorized charges by hotels and restaurants, will be dealt with appropriately, and the CCPA will take necessary action under the provisions of the Act to protect the interests of consumers.
(The advisory is available on the Central Consumer Protection Authority’s website: https://doca.gov.in/ccpa/guidelins.php)
Photo: File/A hotel staff member arranges utensils Eatery in Bengaluru
Based on grievances received through the National Consumer Helpline (NCH) and media reports, the CCPA has observed that certain hotels and restaurants are levying such charges by default, in addition to the price of food and beverages displayed on the menu and applicable taxes. This practice results in a lack of transparency and imposes unjustified costs on consumers.
The current practice of levying “LPG charges” or similar charges is an attempt to circumvent the aforementioned guidelines by using a different nomenclature. The CCPA has clarified that input costs such as fuel, LPG, electricity, and other operational expenses are part of the cost of running a business and must be factored into the pricing of menu items. Recovering such costs through separate mandatory charges constitutes an unfair trade practice under Section 2(47) of the Act.
Through this advisory, the CCPA advises that:
No hotel or restaurant shall levy “LPG charges,” “gas charges,” or similar charges by default or automatically on the bill.
The price displayed on the menu shall be the final price, exclusive of applicable taxes.
Consumers shall not be misled or compelled to pay any additional charge that is not voluntary.
The advisory further reiterates that any such charges, regardless of nomenclature, are considered service charges or additional fees, and their default levy would constitute a violation of the CCPA Guidelines dated 04.07.2022, and may attract action under the Consumer Protection Act, 2019.
Consumer grievance redressal
Consumers who encounter such practices may:
Request the hotel or restaurant to remove the charge from the bill.
File a complaint on the National Consumer Helpline by calling 1915 or through the NCH mobile app.
File a complaint before the appropriate Consumer Commission through the e-Jagriti portal.
Submit a complaint to the District Collector or directly to the CCPA.
The CCPA is closely monitoring such practices across the country. Any violation, including the imposition of unfair or unauthorized charges by hotels and restaurants, will be dealt with appropriately, and the CCPA will take necessary action under the provisions of the Act to protect the interests of consumers.
(The advisory is available on the Central Consumer Protection Authority’s website: https://doca.gov.in/ccpa/guidelins.php)
Photo: File/A hotel staff member arranges utensils Eatery in Bengaluru
