Why restaurants should recover service charges from consumers as 'additional', 'separate levy', asks Delhi HC
Why restaurants should recover service charges from consumers as 'additional', 'separate levy', asks Delhi HC The high court was hearing an appeal by the Centre against a single judge's order staying its guidelines prohibiting hotels and restaurants from levying service charges automatically on food bills. The Delhi High Court on Tuesday questioned why restaurants should recover service charges from consumers as an “additional” and “separate levy." The high court was hearing an appeal by the Centre against a single judge's order staying its guidelines prohibiting hotels and restaurants from levying service charges automatically on food bills. “The impugned order has been passed post-haste without appreciating that the guidelines have been issued for safeguarding the rights and interests of the consumers and seek to protect the consumers from unfair trade practices and violation of consumer rights due to mandatory collection of service charge and adding such charge automatically or by default in the food bill without allowing the consumer the choice or discretion to decide whether they want to pay the such charge or not,” the appeal said.
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