CCPA Cracks Down on Hidden Hotel Charges

The Central Consumer Protection Authority warns hotels and restaurants against unfair trade practices like additional 'LPG charges' and 'fuel cost recovery' on consumer bills. These practices bypass guidelines and impose unnecessary costs on consumers, prompting the CCPA to issue strict advisories against such charges.

CCPA Cracks Down on Hidden Hotel Charges
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  • India

The Central Consumer Protection Authority (CCPA) has issued a stern warning to hotels and restaurants regarding the imposition of extra charges such as 'LPG charges' and 'fuel cost recovery' on consumer bills.

Under the Consumer Protection Act, 2019, the CCPA has classified these extra fees as unfair trade practices because they bypass existing guidelines on service charges. The authority has advised that only applicable taxes can be legitimately added to menu prices.

The CCPA clarified that operational costs, including fuel and LPG, are part of running a business and should be reflected in menu pricing rather than as separate fees. Violations might lead to strict actions, as these surcharges infringe on consumer rights.

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