CCPA warns hotels, restaurants of action for levying ‘LPG, Gas surcharges’

NEW DELHI: The Central Consumer Protection Authority (CCPA) on Wednesday warned hotels and restaurants of action in case it found them levying additional charges under heads such as “LPG charges,” “gas surcharge,” and “fuel cost recovery” in food bills.

The authority issued an advisory invoking provisions of Consumer Protection Act observing that such charges are being imposed by default to circumvent existing guidelines on service charges. It said that no such charges shall be levied automatically, and warned that violations may invite “strict action” as this constitutes “unfair trade practice”.




In an official statement, the CCPA said that grievances received on the National Consumer Helpline (NCH), and media reports, show that certain hotels and restaurants are levying such charges in the consumer bill by default, over and above the price of food and beverages displayed in the menu and applicable taxes. “Such practices result in lack of transparency and impose unjustified costs on consumers,” it said.

The authority clarified that input costs such as fuel, LPG, electricity, and other operational expenses are part of the cost of running a business and must be factored into the pricing of menu items.

It advised eateries that the price displayed in the menu shall be the final price, exclusive only of applicable taxes. Consumers should not be misled or compelled to pay any additional charge that is not voluntary in nature.

The CCPA said consumers who encounter such practices may request the hotel or restaurant to remove the charge from the bill; lodge a complaint on NCH by calling 1915 or through its mobile app and can also file a complaint before the appropriate consumer commission through the e-Jagriti portal.



Ready to Make a Smarter Property Decision? Build Your Legacy with TOI Homes.