Service Charges Not Mandatory In Restaurants or Hotels

I feel very much excited in writing about this news. I have extremely good news for all the foodies reading this article. From now on, there will not be any mandatory service charges, whether it is hotels, or restaurants. In other words, if you are not satisfied with the services offered to you at the hotels/ restaurants, you have the right to say NO to the service charge that is printed on the bill.

I am sure that even you must have got caught in a situation where even if you were unhappy about the services provided, you had to pay the service charge. This was because of the mandatory payment of service charge. But now, you just have to remember to say NO to the printed service charges. Thanks to the central government. Due to the Consumer Act, 1986, the central government has directed the various state governments to “sensitize the hotels and restaurants in the states”.

• Main Reason For The Optional Service Charges:

As I read this news, initially I was more than happy. But then I thought “What can be the possible reason for this optional service charge?” It seems that several customers have complained about this unnecessary service charge. The complaint was regarding the forced payment of around 5-20 percent in lieu of service charges, irrespective of the kind of services provided to the customers. This made the government to proclaim that any customer can refuse to pay the service charge.

• What Is Consumer Protection Act:

The Consumer Protection Act of 1986 sets forth that if any practice is treated as unfair trade practice, then a consumer can complain about this to the appropriate consumer forum. Any trade practice in which deceptive methods are used for the purpose of promotion of sales, then that practice is treated as unfair practices.

After receiving several complains, the department of Consumer Affairs called Hotel Association of India for the purpose of clarification. And hence, they decided to make the service charge as completely discretionary. Also, the hotels and restaurant owners should properly display about the voluntary service charges availability in their premises.

• Possible Effects Of Optional Service Charges:

For every move, there comes two possible scenarios: one positive, and another one is obviously negative. Let us talk about the positive effects first. The optional service charge will ensure that the hotels/restaurants provide the customers with excellent services, as they know that the customer can refuse to pay the service charge. In other words, it will reduce the “for granted” attitude of the hotels/ restaurant owners.

Also, this optional service charge can lead to unwanted disputes and quarrels. People can enjoy their food and then refuse to pay for the services. They can later dispute over the quality of the food. This is one of the negative aspects of this move.  However we hope that positive outcome dominates over the negative ones and we get satisfaction from both ends.