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Service charge on food, drink bills wrong, says Ram Vilas Paswan

India TV Business Desk New Delhi April 15, 2017 10:48 IST
India TV Business Desk

The Central government is planning to issue an advisory to states asking them to crack down against unfair imposition of service charge on food and drink bills. 

Speaking to reporters here on Friday, Food and Consumer Affairs Minister Ram Vilas Paswan said that the service charge does not exist and it is being wrongly charged. 

Paswan said that his ministry has prepared an advisory on this issue and sent it to the PMO for approval. 

A senior ministry official also said the levying of service charge without seeking customer consent will be considered as ‘unfair trade practice’ under the Consumer Protection Act. 

Earlier too on several occasions, Paswan spoke against unfair imposition of service charge on food bill and had even sought explanation from hotels and restaurants' bodies. 

In January, the Department of Consumer Affairs stated that service charge on food bills is not compulsory and a customer can choose to have it waived if not satisfied with experience. 

The states were told to ensure that hotels and restaurants disseminate this information through displays in their premises.