New Delhi, March 25 The Central Consumer Protection Authority directed hotels and restaurants on Wednesday not to levy additional charges, such as 'LPG charges' and 'fuel cost recovery', on consumers, as these constitute unfair trade practices, and strict action will be taken in case of violation.
The authority clarified that only applicable taxes can be added to the price mentioned in the menus of restaurants and hotels. All input costs should be factored into the prices displayed in the menus.
The Central Consumer Protection Authority (CCPA) said it is closely monitoring such practices across the country, and any violation will be dealt with appropriately, and necessary action will be taken to safeguard the interests of consumers.
According to an official statement, the CCPA has "taken serious note of hotels and restaurants levying additional charges, such as 'LPG charges', 'gas surcharge' and 'fuel cost recovery' in consumer bills, terming the practice an unfair trade practice under the Consumer Protection Act, 2019".
The CCPA observed that such charges are being imposed to circumvent existing guidelines on service charges.
The authority has issued a fresh advisory, under section 10 of the Act, directing that no such charges should be levied automatically, and warned 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 in the consumer bill by default, over and above the price of food and beverages displayed in the menu and applicable taxes," the statement said.
Such practices result in unjustified costs for consumers.
The CCPA 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.
Therefore, recovering such costs from consumers through separate mandatory charges constitutes an unfair trade practice, the authority said.
The CCPA has advised that "No hotel or restaurant shall levy 'LPG charges', 'gas charges', or similar charges by default or automatically in the bill".
The price displayed in the menu should be the final price, exclusive of applicable taxes.
"Consumers shall not be misled or compelled to pay any additional charge that is not voluntary in nature," the authority said.
The CCPA stated that any such charges, irrespective of nomenclature, are in the nature of service charges or additional fees, and their levy by default would amount to a violation of the CCPA Guidelines issued on July 4, 2022, and may attract action under the law.
On consumer grievance redressal, the CCPA said that people who encounter such practices should request the hotel or restaurant to remove the charge from the bill.
Consumers can lodge a complaint on the National Consumer Helpline by calling 1915 or through the NCH mobile app.
They can file a complaint before the appropriate Consumer Commission through the e-Jagriti portal. A complaint to the District Collector or directly to the CCPA can be submitted.
"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 necessary action shall be taken by the CCPA under the provisions of the Act to safeguard the interests of consumers," the statement said.
Meanwhile, the government said that the LPG supply "continues to be affected due to the prevailing geopolitical situation", though no dry-outs have been reported and cylinder deliveries are continuing as normal.