Ensure immediate implementation of service charge guidelines: CCPA to DCs

July 10, 2022 37 Views No Comment

• Guidelines not advisory but fully ‘enforceable,’ clarifies CCPA
• Writes to CSs, DCs to arrange publicity and implementation

Morung Express News
Dimapur | July 10

The Central Consumer Protection Authority (CCPA), on July 9, has directed District Collectors (Deputy Commissioners) to ensure immediate enforcement of guidelines issued with regard to levying of service charge by hotels and restaurants.

Upon receiving related complaints, the District Collector may conduct investigation pertaining to violation of the guidelines and submit the report to the Authority within 15 days, informed an official release.

The Authority has further written to Chief Secretaries of all States and Union Territories and DCs across India to arrange wide publicity of the guidelines along with its immediate implementation for protection of consumer interest, stated the release issued by the Union Ministry of Consumer Affairs, Food & Public Distribution via PIB.

The letter gave clear direction that levying of service charge is in violation to the guidelines and constitutes unfair trade practice, affecting rights of consumers as a class, and cognizance of such complaints must be taken on priority, it added.

It further informed that a number of consumers have registered their complaint on the National Consumer Helpline (NCH) with regard to levying of service charge.

From April 1 to June 6, 537 complaints were lodged by consumers on levying of service charge while 85 complaints have been registered in NCH since the issue of the new guidelines on July 4 and the top 5 cities of service charge complaints were New Delhi (18), Bangalore (15), Mumbai (11), Pune (4) and Ghaziabad (3).

Meanwhile, Nidhi Khare, Chief Commissioner, CCPA has clarified that the guidelines are not advisory in nature and are fully enforceable by law.

The guidelines have been issued under Section 18(2) (l) of the Consumer Protection Act, 2019, which empowers the CCPA to issue necessary guidelines to prevent unfair trade practices and protect consumers’ interest, the release said.

The difference between the new and the previous guidelines by the Department of Consumer Affairs is that, in the intervening period, the erstwhile Consumer Protection Act, 1986 was replaced with the Consumer Protection Act 2019, which came into effect in July 2020, it said.

It created the CCPA, a new statutory body empowered by the Parliament to take cognisance of the unfair trade practices and therefore, any violation of the guidelines will be viewed seriously and appropriate action will be taken for unfair trade practice and violating the rights of consumers, it added.

What are the guidelines?

Among others, the guidelines issued on July 4, stipulated that hotels or restaurants shall not add “service charge automatically or by default in the food bill” and “no collection of service charge shall be done by any other name.”

No hotel or restaurant shall force a consumer to pay service charge and shall clearly inform the consumer that service charge is voluntary, optional and at consumer’s discretion, it said.

It further stated that no restriction on entry or provision of services based on collection of service charge shall be imposed on consumers. Service charge shall not be collected by adding it along with the food bill and levying GST on the total amount, it added.

If service charge is levied, a consumer can make request to the concerned hotel or restaurant to remove service charge from the bill amount or may lodge a complaint on the NCH by calling 1915 or through the NCH mobile app. It works as an alternate dispute redressal mechanism at the pre-litigation level.

The complaint can also be filed electronically through e-daakhil portal www.edaakhil.nic.in for its speedy and effective redressal or may send by e-mail to CCPA at com-ccpa@nic.in.

In addition, the consumer may submit a complaint to DC of a concerned district for investigation and subsequent proceeding by the CCPA.

Source: https://www.morungexpress.com/ensure-immediate-implementation-of-service-charge-guidelines-ccpa-to-dcs