Significant advisory aimed at curbing unfair trade practices
NATIONAL: The Central Consumer Protection Authority (CCPA), established under Section 10 of the Consumer Protection Act 2019, has issued a significant advisory aimed at curbing unfair trade practices regarding additional charges that hotels and restaurants may impose, such as “LPG charges,” “gas surcharge,” “fuel cost recovery,” and similar fees. This advisory arises in response to numerous complaints received through the National Consumer Helpline (NCH) and reports from media, indicating that certain establishments are including these charges by default in customer bills, in addition to the displayed prices on menus and applicable taxes.
In its advisory, the CCPA references its previous guidelines issued on July 4, 2022, concerning service charges. The authority has made it clear that the price listed for food and beverages should encompass both the goods and services provided. Consequently, any additional charges that exceed the displayed prices are deemed unfair trade practices under the law.
Moreover, the advisory emphasises that costs related to business operations, such as LPG, fuel, electricity, and other necessary inputs, should already be reflected in the pricing on menus. Imposing these expenses separately on consumers not only compromises transparency but also infringes on consumer rights. The authority views the practice of levying these charges under various names as an intentional strategy to circumvent existing regulations regarding service charges.
To safeguard consumer interests, the CCPA instructs that hotels and restaurants must not automatically include these additional charges in their bills. The displayed menu price should be considered the final price, with the sole exception of applicable taxes. Consumers are urged not to be misled into paying any extra charges that are neither explicitly mentioned in the menu pricing nor voluntary.
In the event that consumers encounter violations of this advisory, they are encouraged to request the removal of such charges from their bills. Additionally, they can file complaints through the National Consumer Helpline by calling 1915, using the NCH mobile application or submitting grievances to the Consumer Commission via the e-Jagriti portal. They may also approach their local District Collector or Deputy Commissioner or send complaints directly to the CCPA via email.
The CCPA has issued a stern warning that failure to comply with this advisory could result in actions being taken under the provisions of the Consumer Protection Act 2019.