NEW DELHI: The Central Consumer Protection Authority (CCPA) will challenge the Delhi High Court’s stay order on the authority’s guideline which had banned inclusion of “service charge” automatically in the food bills. The CCPA would seek the stay order vacated citing that the word “charge” gives the impression that there is legal backing to levying it when in reality paying anything beyond the bill is up to the consumer, TOI has learnt.
Officials said since the CCPA came out with the guideline banning many hotels and restaurants across the country have started complying with the norm and have stopped mentioning “service charge” in the food bills. However, Justice Yashwant Varma of Delhi High Court had said the issue requires consideration and had directed the CCPA to file its reply while staying the guidelines. The matter was listed for further hearing on November 25.
“We are going to challenge the order. We are examining and will take appropriate steps so that we are heard,” CCPA chief commissioner Nidhi Khare said.
The July 4 guidelines issued by CCPA barred hotels and restaurants from levying service charges automatically or by default in food bills and had allowed customers to file complaints with district collectors and consumer commissions.
Speaking to reporters, Khare also said the authority is in the process of coming up with guidelines against fake reviews and fake endorsements, which several companies indulge in. These are done to increase visibility in social media and public platforms.