Restaurants cannot force customers to pay service charges, as clarified by court rulings and consumer protection guidelines in India. Customers have the right to refuse optional service fees, seek bill corrections, and file complaints through helplines or consumer courts.
Refuse Unfair Service Charges or Face Penalty Up to Rs 50,000
New Delhi: Nowadays, eating out is not just a necessity, but a part of lifestyle. People often visit restaurants for family, friends, or office meetings. However, often after a delicious meal, when the bill arrives, GST is added as well as a service charge. This charge can range from 5 to 10 percent or more, significantly increasing the total bill and leaving customers confused.
The Delhi High Court has clarified that no restaurant can make a service charge mandatory. It is entirely up to the customer whether they wish to pay it or not. The court upheld the Central Consumer Protection Authority's guidelines, which state that automatically adding a service charge to the bill is wrong and requiring it violates consumer rights. Furthermore, the Ministry of Consumer Affairs, Food & Public Distribution has also clarified that forcibly charging a service charge is against the law.
If a restaurant fails to comply with these guidelines and forcibly charges customers a service charge, legal action can be taken against them. In such cases, a fine of up to 50,000 rupees can be imposed. If necessary, other punitive measures can also be taken to ensure consumer rights are protected.
If a service charge has been added to your bill without your consent, first ask the restaurant staff to remove it. As a customer, you have every right not to pay the additional charge. If the restaurant continues to pressure you, you can file a formal complaint.
Customers can complain to the National Consumer Helpline or file a case with the Consumer Commission. Complaint filing is also available through the online portal. When filing a complaint, be sure to preserve a copy of the bill, payment receipt, and other relevant documents to ensure prompt action.
