The Central Consumer Protection Authority (CCPA) has warned hotels and restaurants against adding separate charges such as LPG charge, gas charge or fuel cost recovery to customer bills. The authority has stated that such billing practices constitute an unfair practice and could result in strict action. In an advisory issued under the Consumer Protection Act, the authority said menu prices should remain the final base price for consumers with only applicable taxes allowed over and above them. The watchdog has said that it is monitoring such practices across the country and will act where violations are found.
No backdoor billing over the menu price
According to the CPCA, operational expenses such as fuel, LPG, electricity and other running costs are part of the business’s overall cost structure and must already be built already be built into menu pricing. The authority stated that these expenses cannot be recovered later through add-on charges in the bill. It also made clear that no hotel or restaurant should force such charges automatically or by default.
In its official statement, the authority mentioned, “No hotel or restaurant shall levy ‘LPG charges,’ ‘gas charges,’ or similar charges by default or automatically in the bill.” It also added that such levies, whatever name they are given, are effectively additional fees and would violate the CCPA’s 2022 guidelines on service charges.
Complaints and media reports triggered scrutiny
The CCPA’s move follows grievances received through the National Consumer Helpline (NCH) as well as media reports indicating that some eateries were adding these charges over and above menu prices and taxes. The authority believes that such charges are being used as a way to get around existing service charge norms.
The advisory also highlighted that consumers should not be pressured into paying any non-voluntary charge. The regulator stated the displayed menu price should be treated as the final price, excluding only applicable taxes.
What can customers do if charged?
The CCPA has advised that consumers who encounter such charges to first ask the hotel or restaurant to remove them from the bill. If the bill is not resolved, complaints can be submitted through the National Consumer Helpline by calling 1915 or by using its mobile app. Consumers may also approach the appropriate consumer commission through e-Jagriti portal, or file complaints to the district collector or directly to the CCPA. The authority said, “Consumers shall not be misled or compelled to pay any additional charge that is not voluntary in nature.”