The Delhi High Court recently delivered a ruling that prohibits hotels and restaurants from compelling customers to pay a service charge. The case stemmed from complaints by consumers who were being charged a service fee without their consent, often added automatically to their bills. The court emphasized that a service charge should be voluntary and cannot be included as a mandatory part of the bill.
Key points from the ruling:
- No Forced Service Charge: Hotels and restaurants cannot force customers to pay a service charge, and it must not be included automatically in the bill.
- Transparency: If a service charge is included, it must be clearly stated on the menu or bill, and customers should be aware of the charge before making a payment.
- Consumer Rights: The court reinforced the idea that service charges are discretionary, and customers can refuse to pay them if they feel it’s not justified.
- Action Against Grievances: The Consumer Affairs Ministry had previously issued advisories about the practice, and the court’s ruling is seen as a step to protect consumers from unfair business practices.
The ruling is expected to have wide-reaching effects on the hospitality sector, particularly in establishments that rely heavily on automatic service charges as part of their revenue model. It also aims to bring greater transparency and fairness to the consumer experience in hotels and restaurants.
By BHARAT GLOBAL TIME
