{"id":47108,"date":"2022-06-07T15:03:00","date_gmt":"2022-06-07T09:33:00","guid":{"rendered":"https:\/\/tradebrains.in\/features\/?p=47108"},"modified":"2022-06-07T14:59:48","modified_gmt":"2022-06-07T09:29:48","slug":"service-charge-does-not-have-legal-sanction-says-ministry-of-consumer-affairs","status":"publish","type":"post","link":"https:\/\/tradebrains.in\/features\/service-charge-does-not-have-legal-sanction-says-ministry-of-consumer-affairs\/","title":{"rendered":"Service Charge does not have legal sanction says Ministry of Consumer Affairs"},"content":{"rendered":"<div class=\"trade-content_2\" style=\"margin-left: auto;margin-right: auto;text-align: center;\" id=\"trade-3306031956\"><p><a href=\"https:\/\/tradebrains.in\/get\/telegram\/\"><img decoding=\"async\" class=\"alignnone wp-image-101992\" src=\"https:\/\/tradebrains.in\/features\/wp-content\/uploads\/2023\/01\/telegram-channel-300x119.png\" alt=\"\" width=\"148\" height=\"59\" \/><\/a> <a href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMN3Epgswxc--Aw?hl=en-IN&amp;gl=IN&amp;ceid=IN%3Aen\"><img decoding=\"async\" class=\"alignnone wp-image-123430\" src=\"https:\/\/tradebrains.in\/features\/wp-content\/uploads\/2024\/05\/follow-on-google-news-300x82.png\" alt=\"follow-on-google-news\" width=\"222\" height=\"61\" srcset=\"https:\/\/tradebrains.in\/features\/wp-content\/uploads\/2024\/05\/follow-on-google-news-300x82.png 300w, https:\/\/tradebrains.in\/features\/wp-content\/uploads\/2024\/05\/follow-on-google-news-150x41.png 150w, https:\/\/tradebrains.in\/features\/wp-content\/uploads\/2024\/05\/follow-on-google-news.png 468w\" sizes=\"(max-width: 222px) 100vw, 222px\" \/><\/a><\/p>\n<\/div><p>In the previous week, the ministry of consumer affairs asked restaurants to stop the practice of collecting service charges from customers \u201cby default\u201d as it \u201cdoes not have legal sanction.\u201d<\/p><div class=\"trade-content_7\" style=\"margin-left: auto;margin-right: auto;text-align: center;\" id=\"trade-1456746350\"><!-- Composite Start --> \r\n <div id=\"M923760ScriptRootC1549812\"> \r\n <\/div> \r\n <script src=\"https:\/\/jsc.mgid.com\/t\/r\/tradebrains.in.1549812.js\" async> \r\n <\/script> \r\n <!-- Composite End --><\/div><p>The ministry held a meeting with the National Restaurant Association of India (NRAI) on June 2, following complaints from consumers regarding the service charge. Issues relating to service charges levied by restaurants were discussed in the meeting. The levy varies from 5-10% of the food bill.<\/p><p>According to official sources, the ministry has also stated in a meeting with the restaurant owners that, the practice of levying service charges will be expressly prohibited soon. This would be done through an amendment to the Consumer Protection Act, 2019.<\/p><p>Opposing this move, the NRAI which states to represent over 0.5 million restaurants, said, \u201cThere is no illegality in levying service charge on customers,\u201d who decide to pay it. \u201cIt is a matter of individual choice,\u201d it said,&nbsp; adding to the information that, restaurants clearly display information about the amount of service charge levied on their menu cards and on the premises.<\/p><div class=\"trade-content_5\" id=\"trade-2504342263\"><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-4023722985638610\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- in_content_2_news -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-4023722985638610\"\r\n     data-ad-slot=\"7925020301\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><\/div><p>Piyush Goyal, who is in charge of commerce and industry along with food and consumer affairs ministries, dismissed the claim of restaurants removing the service charge would cause them to lose money.<\/p><p>Goyal also stated that restaurant owners are free to increase the rates on their food menu if they wanted to pay higher salaries to their employees.<\/p><p>&#8220;We have not stopped restaurants from increasing their prices. It will be wrong for restaurants to say that they will suffer losses if the service charge is withdrawn,&#8221; he stated during a press conference on Friday. People will not know the real price, if there is a hidden cost,\u00a0 he stated, adding: &#8220;We cannot mislead people by charging for service.&#8221;<\/p><div class=\"trade-after-content\" id=\"trade-1084936845\"><div id=\"taboola-below-article-thumbnails\"><\/div>\r\n<script type=\"text\/javascript\">\r\n  window._taboola = window._taboola || [];\r\n  _taboola.push({\r\n    mode: 'alternating-thumbnails-a',\r\n    container: 'taboola-below-article-thumbnails',\r\n    placement: 'Below Article Thumbnails',\r\n    target_type: 'mix'\r\n  });\r\n<\/script>\r\n<script type=\"text\/javascript\">\r\n  window._taboola = window._taboola || [];\r\n  _taboola.push({flush: true});\r\n<\/script><\/div>","protected":false},"excerpt":{"rendered":"<p>In the previous week, the ministry of consumer affairs asked restaurants to stop the practice of collecting service charges from customers \u201cby default\u201d as it \u201cdoes not have legal sanction.\u201d The ministry held a meeting with the National Restaurant Association of India (NRAI) on June 2, following complaints from consumers regarding the service charge. Issues [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":14453,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[1697,1789],"tags":[],"class_list":["post-47108","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-trending-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.5 (Yoast SEO v25.0) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Service Charge does not have legal sanction says Ministry of Consumer Affairs - Trade Brains Features<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/tradebrains.in\/features\/service-charge-does-not-have-legal-sanction-says-ministry-of-consumer-affairs\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Service Charge does not have legal sanction says Ministry of Consumer Affairs\" \/>\n<meta property=\"og:description\" content=\"In the previous week, the ministry of consumer affairs asked restaurants to stop the practice of collecting service charges from customers \u201cby default\u201d as it \u201cdoes not have legal sanction.\u201d The ministry held a meeting with the National Restaurant Association of India (NRAI) on June 2, following complaints from consumers regarding the service charge. 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