New Delhi: The Central Consumer Protection Authority has officially flagged the practice of hotels and restaurants adding hidden fees such as LPG charges, gas surcharges, and fuel cost recovery to customer bills.
Terming these actions as unfair trade practices under the Consumer Protection Act of 2019, the authority noted that these charges are often imposed by default to bypass existing regulations regarding service charges.
To address this, a fresh advisory has been issued under section 10 of the Act, explicitly directing businesses to stop levying these fees automatically and warning that any violations will result in strict legal consequences.
According to the authority, many establishments have been charging these extra amounts on top of the menu prices and applicable taxes, a trend identified through reports on the National Consumer Helpline and various media outlets.
The agency clarified that operational expenses like electricity, fuel, and gas are standard costs of doing business and should be integrated into the base price of food and beverage items rather than being listed as separate, mandatory line items. By using different names for these fees, businesses are essentially attempting to circumvent transparency requirements and impose unjustified financial burdens on the public.
The new advisory establishes clear rules for the industry, stating that no hotel or restaurant is permitted to levy gas or fuel-related charges by default. The price displayed on a menu must represent the final cost to the consumer, with the only acceptable addition being official government taxes.
Furthermore, the guidelines emphasize that customers should never be misled or forced to pay any additional fees that are not entirely voluntary. Any such charges, regardless of what they are called, are now classified as unauthorized service fees that violate the standing CCPA guidelines from 2022.
Consumers who find these unauthorized charges on their bills are encouraged to take immediate action by first asking the establishment to remove the fee. If the business refuses, individuals can lodge a formal complaint through the National Consumer Helpline by calling 1915 or using its mobile application.
Additionally, grievances can be submitted through the e-Jagriti portal to a Consumer Commission, or reported directly to a District Collector or the CCPA. The authority is actively monitoring these practices nationwide to ensure consumer interests are protected and that the law is strictly enforced against non-compliant businesses.