The Central Consumer Protection Authority (CCPA), established under Section 10 of the Consumer Protection Act, 2019, has issued an advisory to prevent unfair trade practices and safeguard consumer interests regarding the levy of additional charges such as “LPG charges”, “gas surcharge”, “fuel cost recovery”, “gas crisis charge”, or similar charges by hotels and restaurants.
According to the CCPA, complaints received through the National Consumer Helpline (NCH), along with media reports, indicate that certain establishments are levying such charges by default in customer bills, over and above the prices displayed in the menu and applicable taxes.
Referring to its guidelines dated 4th July 2022, on service charges, the Authority has clarified that the price of food and beverages already includes the cost of both goods and services. Therefore, any additional charge beyond the displayed price constitutes an unfair trade practice under the Act.
The advisory reiterates that operational costs such as LPG, fuel, electricity, and other inputs are part of the business expenses and must be factored into the menu pricing. Imposing such costs separately on consumers lacks transparency and violates consumer rights. Further, levying these charges under different names is considered an attempt to bypass existing guidelines on service charges.
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In this regard, the CCPA has advised that no hotel or restaurant shall levy such charges by default or automatically in the bill. Establishments must ensure that the price displayed in the menu is the final price, excluding only applicable taxes. Consumers must not be misled or compelled to pay any additional charges that are not explicitly part of the menu price or are not voluntary in nature.
In case of violations, consumers may request the establishment to remove such charges from the bill. They may also lodge complaints through the National Consumer Helpline by calling 1915 or via the NCH mobile application. Complaints can also be filed with the Consumer Commission through the e-Jagriti portal for redressal. Additionally, consumers may approach the District Collector/Deputy Commissioner or submit complaints to the CCPA via email.
The Authority has cautioned that non-compliance with the advisory may attract action under the provisions of the Consumer Protection Act, 2019.
