The Central Consumer Protection Authority (CCPA) has raised concerns about hotels and restaurants adding extra charges like ‘LPG charges’, ‘gas surcharge’, and ‘fuel cost recovery’ to consumer bills. These charges are seen as an unfair trade practice, according to the Ministry of Consumer Affairs, Food and Public Distribution. The CCPA advised against automatically imposing such fees to bypass service charge regulations.
The CCPA cautioned that violations of this directive could lead to strict action under the Consumer Protection Act, 2019. The move comes in response to complaints received through the National Consumer Helpline (NCH) and media reports, which highlighted the practice of establishments adding these charges on top of menu prices and taxes. Such practices were criticized for lacking transparency and burdening consumers with unjustified costs.
The authority emphasized that costs like fuel, LPG, and electricity are standard operational expenses for businesses and should be factored into menu pricing. It stated that imposing separate mandatory charges for these costs is considered an unfair trade practice. The CCPA instructed hotels and restaurants not to automatically levy such charges and to ensure that menu prices are final, excluding only applicable taxes. Consumers are advised not to be misled or forced to pay any non-voluntary additional charges.
The advisory reiterated that these charges, regardless of their names, are similar to service charges, and their automatic imposition would contravene guidelines issued on July 4, 2022. The CCPA is actively monitoring such practices nationwide and is prepared to take necessary actions to protect consumer interests. Consumers encountering such charges can request their removal from the bill or lodge complaints through the National Consumer Helpline by dialing 1915 or using the mobile application. They also have the option to seek assistance from consumer commissions via the e-Jagriti portal or file complaints with district authorities or the CCPA.
