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Service charge on food unfai rpractice:Paswan

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Imposing service charge on food and drinks at hotels is an unfair trade practice and consumers need not pay it,Consumer Affairs Minister Ram Vilas  Paswan said on Wednesday.
Although there is no provision under the existing law to take action against hotels/restaurants,consumers have the freedom to not pay the service charge and can decidet on oteat if they are informed in advance a boutit through the menu card.
Paswanal some ntioned that in future,such cases would be addressed effectively, as a provision has been made in the new Consumer Protection Bill to set up a regulator CCPA.The bill is likely to see the passage in the forth coming budget session of Parliament.
Addressing the mediaon this issue,Paswan said:“Our Department’s view is that imposing service charge is an unfair trade practice and consumers need not pay.”There is node finitionof‘service charge’ in law but taking service charge without discretion of consumers is an“unfair trade practice”,he said.
Paswan also said that consumers should be informed about service charge in the menu card itself and not in the bill.“The price list in the menu card should reflect all inclusive costsincludingservicecharge,” hesaid.He also argued that there is no need to take service charge from consumers as price of each food item quoted in the menu card is arrived at after fact oringin all expenses.
“Our Department’s view is that imposing service charge is an unfair trade practice and consumers need not pay.Theprice list in the menu card should reflect all inclusive costs including service charge”
Business Standard New Delhi,12th January 2017

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