No service charge by default, Govt tells hotels & restaurants: Basics Explained

Consumer Protection Authority (CCPA) barred hotels and restaurants from adding service charges “automatically or by default” to their food bill.

“No hotel or restaurant shall force a consumer to pay the service charge and shall clearly inform the consumer that service charge is voluntary, optional and at consumer’s discretion,”

“If any consumer finds that a hotel or restaurant is levying service charge in violation to the guidelines, a consumer may make a request to the concerned hotel or restaurant to remove service charge from the bill amount,”

It said that in case of violation, a consumer can ask the hotel/ restaurant to remove the service charge or seek redressal by filing a complaint.

Consumers can file complaints online, via e-daakhil portal (www.e-daakhil.nic.in), by calling 1915. In addition, they can submit a complaint to the district collector for investigation and subsequent proceedings by the CCPA. The consumers can also email their complaints to the CCPA at com-ccpa@nic.in.

LEARNING FROM HOME/WITHOUT CLASSES/BASICS

The Consumer Protection Act, 2019

The act has provisions for the protection of consumers from corrupt and unscrupulous malpractices by the sellers, manufacturers, service providers, etc. and to provide remedies in case their rights as a consumer have been violated. The act gave rights to consumers;

1. The right of a consumer to be protected from the marketing of goods and services that are hazardous and detrimental to life and property.
2. The right of a consumer to be protected against unfair trade practices by being aware of the quality, quantity, potency, purity, standard, and price of goods, products, or services.
3. The right of a consumer to have access to a variety of goods, services, and products at competitive prices.
4. The right to seek redressal at respective forums against unfair and restrictive trade practices.
5. The right to receive adequate compensation or consideration from respective consumer forums in case they have been wronged by the seller.
6. The right to receive consumer education.

As per the Act The Central Government shall establish a Central Consumer Protection Authority which is known as the Central Authority. The state government shall establish a District Consumer Disputes Redressal Commission, known as the District Commission in each district of the state under the Consumer Protection Act, 2019.

7. The District Commissions will have the jurisdiction to entertain complaints where the value of the goods, services or products paid as consideration to the seller does not exceed 50 lakh rupees. 
8. State Commissions will have the jurisdiction to entertain complaints where the value of the goods, services or products paid as consideration to the seller exceeds 50 lakh rupees but does not exceed two crore rupees.
9. The National Commission will have the jurisdiction to entertain complaints where the value of the goods, services or products paid as consideration to the seller exceeds two crore rupees.
10. A Consumer Mediation Cell shall be established by the Central Government at the national level and every state government shall establish Consumer Mediation Cell exercising within the jurisdiction of that state.
11. The Act further states that every complaint concerning consumer dispute shall be disposed of as expeditiously as possible. A complaint filed under this Act shall be decided within the period of three months from the date of receipt of notice by the opposite party in the cases the complaint does not require analysis or testing of the goods and services and within a period of 5 months if it requires analysis or testing of the goods and services.
12. The Act lays down the scope for e-commerce and direct selling.
13. The Act contains provisions for product liability and unfair contracts and it also includes three new unfair trade practices. In contrast, the old Act just stated six types of unfair trade practices.
14. The Act of 2019 acts as the advisory body for the promotion and protection of consumer rights.

Liability of product manufacturer

A product manufacturer will be held liable in a product liability action under the  following circumstances:

The product contains manufacturing defects; The product is defective; there is a deviation from manufacturing specifications; The product does not conform to the express warranty.; the product fails to contain adequate information for proper usage.

Also, there is Liability of product service provider and Liability of product seller.