Civil Supplies Commissioner C.V. Anand on Saturday convened a meeting with representatives of hotels association where he warned them that imposition of service charge on bills handed out to customers at hotels and restaurants was illegal.
Payment of service charge by customers was voluntary because it was supposed to be a tip for the service that they received from hotels and restaurants. But, a number of complaints were received in the National Consumer Helpline that hotels and restaurants included ‘service charge’ as a separate head in the bill to collect 5 to 20% of value of food items consumed in lieu of tips, a release said.
Therefore, Mr. Anand told the representatives, the bills may clearly mention service charge as voluntary. The space against the head ‘service charge’ in the bill may be left blank for the customers to fill and pay the amount that they quoted.
The legal metrology department would conduct raids on hotels and restaurants from Monday to check if the amount was continued to be collected despite Saturday’s firm instructions. Mr. Anand warned the representatives that tips or gratuity paid by customers towards hospitality received by them was a separate transaction between them and hotel staff at the discretion of customers.
