The Central Consumer Protection Authority has issued an advisory prohibiting hotels and restaurants from levying additional charges such as LPG charges, gas surcharge, or fuel cost recovery in customer bills, stating that such practices may amount to an unfair trade practice under the Consumer Protection Act, 2019.
The advisory has been issued in light of multiple complaints received from consumers regarding imposition of such charges over and above the menu price and applicable taxes.
The Authority has clarified that operational costs, including expenditure towards LPG, fuel, and electricity, form part of the cost of running a business and are required to be factored into the pricing of food items. Levying such charges separately lacks transparency and results in misleading consumers.
The Authority has further observed that:
Charges such as LPG charges, gas surcharge, or fuel cost recovery cannot be imposed separately in addition to the menu price.
Menu prices must reflect the final cost of the food items, excluding applicable taxes.
Renaming or recharacterising such charges to circumvent regulatory guidelines will not be permissible.
Imposition of such charges may amount to an unfair trade practice.
The Authority has also indicated that consumers, upon being subjected to such charges, may seek removal of the same from the bill. In the event of non-compliance, consumers may avail remedies by approaching the National Consumer Helpline or the appropriate consumer commision.
The advisory reiterates the requirement of transparency in pricing and prohibits imposition of hidden or mandatory charges on consumers.
