Regulator Cracks Down on Hidden Charges
The Central Consumer Protection Authority (CCPA) has termed the practice of hotels and restaurants levying additional charges such as LPG fees, gas surcharge, and fuel cost recovery as an unfair trade practice. The directive comes as part of a broader effort to ensure transparency and protect consumer rights in the hospitality sector.
Advisory Issued to Hospitality Establishments
The authority has issued a clear advisory stating that such charges must not be added automatically to consumer bills. According to the Ministry of Consumer Affairs, these fees are often being imposed by default, effectively bypassing existing regulations around service charges.
The CCPA has warned that any violations could invite strict action under the Consumer Protection Act, 2019.
Rising Complaints Trigger Action
The move follows multiple complaints received via the National Consumer Helpline and media reports highlighting instances where customers were billed extra under various surcharge labels.
The regulator noted that such practices lack transparency and unfairly burden consumers with costs that should already be included in pricing.
Operational Costs Must Be Built Into Pricing
The CCPA clarified that expenses such as fuel, LPG, and electricity are standard operational costs for businesses and must be factored into menu prices. Recovering these costs through separate, mandatory charges is not permissible.
It further emphasised that menu prices should be final, excluding only applicable taxes, and that customers must not be misled or compelled into paying non-voluntary charges.
Reinforcing Service Charge Guidelines
The advisory reiterates that these surcharges, regardless of naming, are effectively equivalent to service charges. Their automatic imposition violates the service charge guidelines issued on July 4, 2022.
Consumer Rights and Redressal
Consumers who encounter such charges can request their removal from the bill. They can also file complaints via the National Consumer Helpline (1915), its mobile app, or approach consumer commissions through the e-Jagriti portal.
The CCPA has stated it will continue monitoring such practices closely to safeguard consumer interests across the country.
