New Delhi, July 27: The Central Consumer Protection Authority (CCPA) has initiated suo motu action against 41 restaurants across the country for violation of consumer rights and adoption of unfair trade practices by levying service charge by default on consumers' bills.
The action has been taken based on complaints received through the National Consumer Helpline (NCH). The complaints were supported by invoices showing that service charge had been automatically added to consumers' bills without obtaining their explicit consent.
Based on these complaints, CCPA conducted investigations and found that the automatic levy of service charge violated the Guidelines to Prevent Unfair Trade Practices and Protection of Consumer Interest with Regard to Levy of Service Charge in Hotels and Restaurants.
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