7 in 10 consumers are not satisfied with meeting CCPA restaurant service fee standards

New Delhi, July 26 (SocialNews.XYZ) Nearly seven in 10 consumers are unhappy with the Delhi High Court’s decision to suspend recent government guidelines banning restaurants from automatically levying service charges on food bills, according to a new report released on Tuesday.

Delhi’s HC last week suspended new guidelines from the Central Consumer Protection Authority (CCPA) prohibiting restaurants from adding default service charges to food bills.


A new survey by LocalCircles found that 70% of respondents plan to either refuse to pay service tax or avoid restaurants that charge it.

“Consumer contention is that most customers in air-conditioned restaurants tend to tip staff in the normal course based on the quality of service,” the results showed.

A breakdown of those opposed to service charges shows that 20% plan to fight and not pay the additional charge, 37% of respondents plan to avoid restaurants that charge service charges, while 13% plan to avoid eating in restaurants.

In other cases, 28 percent expressed willingness to pay a service fee if it was part of the bill, while 2 percent of respondents were undecided about their course of action. LocalCircles conducted a nationwide survey that received over 21,000 responses from consumers located in 291 districts.

When asked about their experiences, of those who had poor or poor service experiences, 23 percent said it happened once or twice, 18 percent said it happened three to five times, and Worse still, 24 percent of respondents said it had happened as much 6-10 times, while 6 percent were among those who had a bad service experience despite having service charges taken from the bill, more than 10 times.

LocalCircles said it would share the findings of this report with the CCPA and the Department of Consumer Affairs so that they take action to defend consumer rights.

In its response to the verdict, the National Restaurant Association of India (NRAI) said it had always been firm in its assertion that there was nothing illegal about the charging of service charges and that it s It was a very transparent system.

The CCPA said the consumer can ask the hotel or restaurant concerned to remove the service charge from the amount of the bill. The consumer can also file a complaint against unfair commercial practices with the Consumer Commission.

Source: IANS

7 in 10 consumers are not satisfied with meeting CCPA restaurant service fee standards

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