The Central Consumer Protection Authority (CCPA) has taken a strict stance against hotels and restaurants that add arbitrary "LPG charges" or "gas surcharges" to food bills. Labeling this an unfair trade practice, the authority has mandated an immediate halt to such additional levies, warning of legal action against violators.
According to an official statement, the CCPA has "taken serious note of hotels and restaurants levying additional charges, such as 'LPG charges', 'gas surcharge' and 'fuel cost recovery' in consumer bills, terming the practice an unfair trade practice under the Consumer Protection Act, 2019".
Misleading Charges Under The Scanner
In an advisory issued on Wednesday, the CCPA noted that many establishments are charging customers for fuel costs or LPG expenses over and above the prices listed on the menu. The authority stated that this practice misleads consumers and places an unfair financial burden on them.
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"Consumers shall not be misled or compelled to pay any additional charge that is not voluntary in nature," the authority said.
Key points from the CCPA directive:
Operational Costs: Expenses like gas, electricity, and fuel are part of a restaurant's daily operational overheads.
Pricing Transparency: These costs should be factored into the food prices themselves rather than being listed as separate line items on the bill.
No Loophole for Service Charges: The CCPA observed that some businesses are simply renaming "service charges" to bypass previous regulations. The authority clarified that changing the name of a fee does not make it legal.
Protections For Consumers
According to the new guidelines, the price listed on the menu is considered final. Establishments cannot force customers to pay extra fees under the guise of utility surcharges. Any hotel or restaurant found violating these rules will face proceedings under the Consumer Protection Act.
"The CCPA is closely monitoring such practices across the country. Any violation, including the imposition of unfair or unauthorised charges by hotels and restaurants, will be dealt with appropriately, and necessary action shall be taken by the CCPA under the provisions of the Act to safeguard the interests of consumers," the statement said.
How to Report Violations
The CCPA has urged consumers to remain vigilant regarding their rights. If an unauthorised charge appears on a bill, customers are encouraged to:
Request Removal: Ask the establishment to remove the charge immediately.
Call the Helpline: File a complaint via the National Consumer Helpline by dialing 1915.
Digital Portals: Use the NCH Mobile App or the E-Daakhil (E-Jagriti) portal for formal grievances.
The authority confirmed it is monitoring businesses nationwide to ensure consumer interests are protected.