REGULATORY · INDIA
CCPA directs restaurants to stop automatic surcharges
Change
The CCPA issued an advisory under Section 10 of the Consumer Protection Act, 2019 directing hotels and restaurants not to levy automatic 'LPG', 'gas surcharge' or 'fuel cost recovery' charges in consumer bills.
Why it matters
The CCPA issued a Section 10 advisory under the Consumer Protection Act, 2019 directing that no automatic 'LPG', 'gas surcharge' or 'fuel cost recovery' charges be levied in consumer bills. It classifies such charges, irrespective of nomenclature, as service charges or additional fees that amount to unfair trade practices. Only applicable taxes may be added to the price displayed in the menu. Violations of the advisory attract strict action under the Consumer Protection Act, 2019.
Implications
- · Hotels and restaurants must remove automatic LPG/gas/fuel-recovery surcharges from consumer bills and menus.
- · Billing systems and menu displays need updating to show final prices with only applicable taxes added.
- · Continued automatic charging is subject to enforcement action under the Consumer Protection Act, 2019, increasing regulatory compliance exposure.
Who is affected
- · Operators
- · Legal teams
Source
Topics
Law & Public Safety Regulatory Actions Compliance Agriculture Food & Beverages