Tip ban: 85 complaints on consumer helpline, Collectors to take action
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After the government banned default service charges in food bills at restaurants and hotels, 85 complaints have been registered against the practice on the National Consumer Helpline (NCH).
The ban was imposed on July 4 which stated that it is unfair that customers are forced to pay a tip when they are already paying for the food as per the price quoted by the eatery.
The Central Consumer Protection Authority (CCPA) on Saturday directed district collectors to take strict action against the violators. Most complaints are made in five cities - New Delhi (18), Bengaluru (15), Mumbai (11), Pune (4), and Ghaziabad (3).
The new guidelines are being provided wide publicity in consumer interest. Consumer protection regulator CCPA has instructed chief secretaries and district collectors of states and union territories to take appropriate action against those who force customers to pay tips.
CCPA Chief Commissioner Nidhi Khare clarified that the new guidelines are not "advisory in nature" but fully "enforceable by law".
She added that the guidelines have been issued under Section 18(2)(l) of the Consumer Protection Act, 2019. It empowers the CCPA to issue necessary guidelines to prevent unfair trade practices and protect consumers' interests.
The new regulation is being implemented to prevent hotels from embarrassing the customers who refuse to pay it or adding service charges by another name. However, if the customer wants to leave a tip, they can.
From April 1, 2021, to June 20, 2022, around 537 complaints were lodged by consumers.
If a restaurant includes default service charges on the food bill, consumers can report it by calling the number 1915 or through the NCH mobile app. People can also file a complaint with the Consumer Commission.
The CCPA Chief Commissioner further said the district collector may conduct an investigation on violation of the guidelines on the basis of such a complaint and submit his report to CCPA within 15 days.