Kohima, April 16 (MExN): The Central Consumer Protection Authority (CCPA) has issued an advisory prohibiting hotels and restaurants from levying additional charges such as “LPG charges”, “gas surcharge”, “fuel cost recovery”, or similar fees, terming them unfair trade practices under the Consumer Protection Act, 2019.
The Authority stated that complaints received through the National Consumer Helpline, along with media reports, indicate that certain establishments are adding such charges by default to customer bills, over and above menu prices and applicable taxes.
Referring to its earlier guidelines issued on July 4, 2022, on service charges, the CCPA clarified that the price of food and beverages already includes the cost of both goods and services.
Any additional charge beyond the displayed price constitutes an unfair trade practice under the Act, it added.
As per the State DIPR, the advisory further reiterated that operational costs such as LPG, fuel, electricity, and other inputs are part of a business’s overall expenses and must be factored into menu pricing.
Imposing these costs separately on consumers lacks transparency and violates consumer rights. It further noted that levying such charges under different names appears to be an attempt to circumvent existing guidelines on service charges.
Accordingly, the CCPA directed that no hotel or restaurant shall impose such charges by default or automatically in the bill. Establishments have been asked to ensure that the price displayed in the menu is the final price, excluding only applicable taxes, and that consumers are neither misled nor compelled to pay any non-voluntary charges.
In case of violations, consumers may request removal of such charges from their bills and lodge complaints through the National Consumer Helpline -1915 or via its mobile application.
Complaints can also be filed before the Consumer Commission through the e-Jagriti portal. Further, consumers may approach the District Collector or Deputy Commissioner, or submit complaints directly to the CCPA, the advisory added.
The Authority cautioned that non-compliance with the advisory may invite action under the provisions of the Consumer Protection Act, 2019.
