New Delhi: The Central Consumer Protection Authority (CCPA) has flagged the practice of hotels and restaurants demanding or collecting additional charges such as “LPG charges,” “gas surcharge,” or “fuel cost recovery” in consumer bills, terming it an unfair trade practice, the Ministry of Consumer Affairs, Food and Public Distribution said on Wednesday.
The authority noted that such charges are being imposed by default, bypassing existing norms on service fees, and issued an advisory directing that no such fees should be automatically levied. Violations, the CCPA warned, may invite strict action under the Consumer Protection Act, 2019.
The move comes following complaints received through the National Consumer Helpline (NCH) and media reports showing certain establishments adding these charges over and above menu prices and applicable taxes. According to the regulator, such practices lack transparency and impose unjustified costs on consumers.
The authority clarified that input costs such as fuel, LPG, electricity, and other operational expenses are part of running a business and must be factored into menu pricing. “Recovery of such costs through separate mandatory charges constitutes an unfair trade practice,” it said.
The CCPA directed that no hotel or restaurant shall levy these charges by default, and that menu prices should remain final, excluding only applicable taxes. It also stressed that consumers must not be misled or compelled to pay any additional charge that is not voluntary.
The advisory further reiterated that such charges, irrespective of nomenclature, are akin to service charges, and their automatic levy would violate guidelines issued on July 4, 2022. The authority said it is closely monitoring such practices across the country and will take necessary action to safeguard consumer interests.
Consumers encountering such practices can request removal of the charge from their bill or lodge complaints through the National Consumer Helpline by calling 1915 or via its mobile application. Complaints can also be filed with consumer commissions through the e-Jagriti portal or with district authorities or the CCPA.
With IANS inputs