Consumer Watchdog Clamps Down on Hidden Hotel & Restaurant Fees
The Central Consumer Protection Authority has advised hotels and restaurants against levying extra fees like LPG charges on food bills, labeling it an unfair trade practice under the Consumer Protection Act, 2019. Establishments are urged to include operating costs in menu pricing, avoiding charges beyond listed prices except applicable taxes.
- Country:
- India
The Central Consumer Protection Authority (CCPA) has issued a stringent advisory demanding that hotels and restaurants cease levying extra charges such as LPG and gas surcharges on food bills. These charges are now labeled as unfair trade practices under the Consumer Protection Act, 2019.
The advisory, dated March 25, highlights that operational overheads like LPG, electricity, and other inputs should be incorporated into the price of food items instead of being separately charged to consumers. This advisory came after grievances were received through the National Consumer Helpline alongside media reports pointing to establishment breaches.
The CCPA insists that the price listed on a menu should be final, save for applicable taxes, and admonishes venues from automatically including these surcharges in bills. Charging beyond the stated menu price, aside from applicable taxes, will be treated as an unfair trade practice, potentially prompting enforcement action.