Restaurants Can’t Force Service Charge On Users

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What has happened?

The Central Consumer Protection Authority (CCPA) on Monday issued guidelines to prevent unfair trade practices, and To protect the interest of consumers with regard to the levy of service charge in hotels and restaurants.
Under the guidelines, consumers can lodge complaints against hotels and restaurants by calling the number 1915.
The CCPA was established in July 2020 under The Consumer Protection Act, 2019,
To promote, protect, and enforce the rights of consumers as a class, and to investigate, prosecute, and punish violators.

The CCPA has issued five major guidelines regarding the levy of service charge by restaurants and hotels, which has for long been a contentious issue and has periodically triggered complaints from consumers.
The guidelines say:
No hotel or restaurant shall add service charge automatically or by default in the bill;
Service charge shall not be collected from consumers by any other name;
No hotel or restaurant shall force a consumer to pay service charge and shall clearly inform the consumer that service charge is voluntary, optional, and at the consumer’s discretion;
No restriction on entry or provision of services based on collection of service charge shall be imposed on consumers; and Service charge shall not be collected by adding it along with the food bill and levying GST on the total amount.

The CCPA took cognizance of grievances regarding restaurants and hotels levying service charge by default, without first asking or informing consumers.
On June 2, the Department of Consumer Affairs under the Ministry of Consumer Affairs, Food & Public Distribution,
Held a meeting with restaurant associations and consumer organisations on the levy of service charge in hotels and restaurants.
After the meeting, the department announced that the Centre would soon release a “robust framework” to ensure strict compliance of its 2017 guidelines which prohibited the levy of service charge.
A day later, Union Minister of Consumer Affairs, Food and Public Distribution Piyush Goyal said restaurants cannot ask customers to pay hidden charges.

The consumer has four options at different levels of escalation in case she spots the levy of service charge in her bill.
First, she can make a request to the hotel or restaurant to remove the service charge from her bill.
Second, she can lodge a complaint on the National Consumer Helpline (NCH), which works as an alternative dispute redressal mechanism at the pre-litigation level.
The complaint can be lodged by making a call on the number 1915, or on the NCH mobile app.
Third, the consumer can complain to the Consumer Commission, or through the edaakhil portal, http://www.edaakhil.nic.in.
Fourth, she can submit a complaint to the District Collector of the concerned district for investigation and subsequent proceedings by the CCPA.
A consumer can complain directly to the CCPA by sending an e-mail to com-ccpa@nic.in.

The CCPA has issued guidelines under Section 18 (2) (I) of The Consumer Protection Act, 2019.
The guidelines are in addition to the Centre’s 2017 guidelines which prohibit the levy of service charge on consumers by hotels and restaurants, and
Terms the charging for anything other than “the prices displayed on the menu card along with the applicable taxes” without “express consent” of the customer as “unfair trade practices”.

During the June 2 meeting, representatives of the hotel and restaurant industry told the Centre that the levy of service charge by a restaurant is a “matter of individual policy”.
There is “no illegality in levying such a charge”, they said.
They also said that service charge brings in revenue to the government, since tax is paid on it.
“The money collected as service charge was “not pocketed by the owner, it is equally distributed between everyone who works to make your experience better”.

Q) Which of the following terminology are not related to Income tax?