Guidelines prohibiting levying of service charge need consideration

On Wednesday, the Delhi High Court stayed the guidelines preventing hotels and restaurants from adding service charges on meals.

Photo: Pixabay

In response to petitions filed by the National Restaurant Association of India (NRAI) and Federation of Hotels and Restaurant Associations of India contesting the Central Consumer Protection Authority’s (CCPA) July 4 guidelines, Justice Yashwant Varma stated that the matter needs to be carefully considered and instructed the authorities to submit a response.

As the matter needs consideration,  the directions as contained in para 7 of the guideline of July 4 shall remain until the next listing, the court said.

The court ruled that the stay is conditional on the petitioners’ members ensuring that the service charge is duly published on the menu or in other places, along with the requirement that customers pay it in addition to the price and taxes.

Additionally, it was stated that the members would undertake not to add a service charge to any take-out orders.

On November 25, the court set a new hearing date for the case.

The July 4 order’s prohibition, according to the NRAI’s petition, was arbitrary, unsustainable, and should be overturned since it was made without taking into account all of the relevant information.

(With inputs from PTI)

 

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