NRAI Moves to Delhi HC Challenging CCPA Guidelines on Adding Service Charge by Default in Food Bill

Shashwati Chowdhury

Published on: July 19, 2022 at 18:45 IST

The Central Consumer Protection Authority (CCPA) issued guidelines on July 4 stating that hotels or restaurants should not automatically or by default add service charge to food bills. The National Restaurant Association of India (NRAI) has moved to the Delhi High Court challenging these guidelines [NRAI &Ors. vs. UOI &Ors.].

On July 21, after a brief hearing earlier, the National Restaurant Association of India’s (NRAI) plea will be heard in detail.

The restaurant association reiterated its stand in court, arguing that the new government guidelines do not have a legal stand.

The guidelines’ contents cannot be regarded as a government order in the absence of due authentication and promulgation, the plea reads.

In order to prevent unfair trade practises and violations of consumers’ rights with regard to hotels and restaurants that levy service charges, consumers may lodge a complaint with the National Consumer Helpline (NCH).

The Central Consumer Protection Authority (CCPA), which comes under the Ministry of Consumer Affairs had issued guidelines to prevent unfair trade.

According to the CCPA, a customer may request a hotel or restaurant to remove service charges in the final bill amount. The Consumer Commission will also accept complaints from consumers regarding unfair trade practises.

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