A WELCOME MOVE

This is in reference to yesterday’s report “Hotels & restaurants can’t force customers to pay service charges”. In a welcome move, on Monday the Central Consumer Protection Authority (CCPA) has issued guidelines for preventing unfair trade practices and violations of consumer rights in regard to levying service charges in hotels and restaurants. The authority has corrected a wrong by directing that service charges levied by hotels and restaurants cannot be automatic or by default and will henceforth have to be voluntary. In other words, consumers have to be informed of the levy and it is optional for them to pay. They cannot be barred from the eatery either. The authority has also warned against levying the service charge by collecting it under a new name. We think that service charges are usually termed as a component of the bill that goes to pay staff emoluments. This is unfair to the consumers because it is the employer’s responsibility, not the customer’s duty to recompense employees. Of course, it is good form to tip workers in the contact industry but each consumer has different paying ability and opinions on this. However, nothing stops eateries from adding the service charge bill to the tariff on the menu that they offer. Here again, it is the customer’s discretion whether to gauge if he or she is being overpriced. Now it remains to be seen how the CCPA’s order will be enforced. Consumer complaints are often treated as low priority by India’s overworked, inefficient governance pyramid. Consumer courts are horribly backlogged. The best hope is that executive action will prove to be adequate deterrence. Here again, there mustn’t be overreach, and eateries should be given a fair chance to reform.

— KHOKAN DAS, KOLKATA via email