Hotels object CCPA guidelines on service charges

CCPA has barred hotels and restaurants from adding service charges automatically or by default in the food bill

The Federation of Hotel & Restaurant Associations of India (FHRAI), the apex body of the hospitality industry, has taken strong objection to the Central Consumer Protection Authority (CCPA) order barring hotels and restaurants from adding service charges automatically or by default in the food bill.

The Hotel & Restaurant Association of Western India (HRAWI), the apex body in Western India, too expressed strong reservations.

"Most of these guidelines issued by CCPA are already followed by hotels and restaurants. It's extremely disheartening that the hospitality industry is constantly singled out. We have explained over and over again that there is nothing illegal in collecting a service charge. It is a charge collected for the benefit of the staff, which includes everyone from the waiters to the personnel working in the kitchen who have served a consumer directly and indirectly," said Gurbaxish Singh Kohli, Vice President, FHRAI.

He said no hospitality establishment coaxes a consumer to pay it if they choose not to.

"Ironically, several online websites and apps charge convenience fees, including the government-run IRCTC. These do not even explain what the charge is for, nor is the consumer given a choice to opt out of it. We ask the government to introduce a law that is uniform to all businesses and that the hospitality industry is not discriminated against,"

"We have taken note of the new development. These are a new set of guidelines that have been issued by CCPA and not a new law. Most of these guidelines have already been followed by hotels and restaurants. Nobody was forced to pay the service charge, nor was any consumer turned back if they disagreed to pay it," said Pradeep Shetty, Joint Honorary Secretary, FHRAI and Senior Vice President, HRAWI.