Hotels And Restaurants Barred From Adding Default Fuel Charges Under Consumer Law

Restaurants Cannot Add Fuel Charges To Bills, Says Consumer Authority: The Central Consumer Protection Authority has issued an advisory addressing the practice of hotels and restaurants adding charges such as LPG fees, gas surcharges and fuel cost recovery to customer bills.

The authority has stated that levying such charges by default amounts to an unfair trade practice under the Consumer Protection Act 2019 . These charges are often added over and above the listed price of food and beverages and applicable taxes.

The advisory follows complaints received from consumers regarding the inclusion of such charges in bills without clear consent.

Default Charges Not Permitted

According to the advisory, hotels and restaurants must not add LPG or similar charges automatically to bills. Any such charges, if imposed by default, are considered a violation of consumer protection provisions.

The authority also noted that using different terms for these charges does not change their nature. Charges labelled as fuel recovery or gas surcharge, when applied without customer approval, fall under the same category.

Operational Costs Must Be Included In Menu Prices

The advisory clarifies that expenses such as fuel, LPG, electricity and other operational costs are part of running a business. These costs should already be included in the pricing of items listed on the menu.

As per the directions, the price displayed in the menu should be the final price, excluding only applicable taxes. Adding separate mandatory charges beyond this is not permitted.

Clear Directions For Businesses

The authority has outlined the following:

• Hotels and restaurants must not levy LPG or similar charges by default
  
• Menu prices must remain transparent and include all operational costs except taxes
  
• Customers must not be required to pay any non-voluntary additional charge
  

It has also reiterated that such charges, irrespective of their name, are treated as additional fees similar to service charges if imposed automatically.

Steps For Consumer Complaints

Consumers who find such charges in their bills can take action through available grievance mechanisms.

They may first request the establishment to remove the charge. If not resolved, complaints can be registered through the National Consumer Helpline by calling 1915 or via its mobile application.

Consumers may also file complaints before the appropriate Consumer Commission through the e-Jagriti portal or approach the relevant district authorities.

Monitoring And Enforcement

The authority has indicated that such practices are under observation. Any violation, including the imposition of unauthorised charges, may attract action under the Consumer Protection Act 2019.

The advisory can be accessed on the official website of the Central Consumer Protection Authority.

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