Hotels, Restaurants Cannot Add Fuel Charges Separately, Says Consumer Authority
New Delhi, March 25, KNT: The Central Consumer Protection Authority (CCPA) has issued an advisory directing hotels and restaurants not to levy additional charges such as “LPG charges”, “gas surcharge” or similar costs on customer bills, terming such practices as unfair under consumer protection laws.
The advisory, issued on March 25, comes following complaints and reports that eateries were adding separate charges linked to fuel or operational costs over and above menu prices and applicable taxes.
The development is significant as it reinforces consumer rights and aims to curb hidden charges that may mislead customers or inflate final bills.
According to the advisory, the cost of inputs such as fuel, LPG and electricity should already be included in the pricing of food and beverages, and cannot be recovered through separate mandatory charges.
“Charging anything other than the stated menu price and applicable taxes would amount to an unfair trade practice,” the authority said, referring to provisions under the Consumer Protection Act, 2019.
The CCPA further clarified that imposing such charges under different names, including “fuel cost recovery” or “gas crisis charge”, is an attempt to bypass existing guidelines on service charges and will be treated as a violation.
It directed that hotels and restaurants must ensure that the price displayed in the menu is the final price, excluding only applicable taxes, and that no additional compulsory charges are added automatically to bills.
The advisory also emphasised that consumers should not be misled or compelled to pay any extra charge that is not clearly part of the menu price or is not voluntary in nature.
Consumers who encounter such practices have been advised to raise the issue with the establishment, approach the National Consumer Helpline, or file complaints with consumer commissions or district authorities for redressal.
The directive has been circulated to all states and union territories, district collectors, and industry bodies including hotel and restaurant associations for compliance. [KNT]
