What does a service fee ban mean for diners? Expect higher menu prices — a lot higher
1 year, 1 month ago

What does a service fee ban mean for diners? Expect higher menu prices — a lot higher

LA Times  

Coming this summer is a new state law that bans unadvertised service fees, surcharges and other additional costs that are added to the end of a bill for meals or delivery service. Gavin Newsom signed into law in October, is set to prohibit “junk fees” across a wide swath of businesses, including online ticket sales, hotels, restaurants, bars and delivery apps. Previous statements from the attorney general’s office said SB478 would not “bar restaurants from charging service fees,” the San Francisco Chronicle reported last fall. “I think that in areas like San Francisco that have higher mandated laws that put costs on small restaurants — the extra healthcare spend, the extra sick pay, the extra paid family leave — all the stuff we pay for that people aren’t even aware of, it’s gonna have to make us put prices higher.” Her organization represents roughly 800 restaurants in San Francisco and has been attempting to advise and prepare restaurateurs on how to comply with the new legislation. When asked whether this is acceptable procedure as is, as well as how the practice differs from restaurants and bars listing surcharges and fees on menus, a representative for the attorney general said, “We are unable to provide legal advice or analysis.” “Fees help us operate the DoorDash platform, ensure Dashers are paid fairly, and offer merchants tools to grow their businesses,” a spokesperson for DoorDash wrote in a statement to The Times.

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History of this topic

Delhi High Court declares mandatory restaurant service charges unlawful
1 day, 9 hours ago

Delhi High Court declares mandatory restaurant service charges unlawful

India Today  

The Delhi High Court made a historic judgement regarding a hospitality concern by placing an injunction on hotels and restaurants enforcing automatic service charges as the law mandates a customer’s right to choose. SERVICE CHARGES POLICY With the intention of stopping organised consumer abuse, the CCPA formulated certain guidelines. The most important instructions are: Restaurants and hoteliers cannot grossly charge …

Eateries can’t impose service charge, rules Delhi high court
3 days, 10 hours ago

Eateries can’t impose service charge, rules Delhi high court

Hindustan Times  

The Delhi high court on Friday prohibited hotels and restaurants from automatically adding a “service charge” to food bills, affirming the Central Consumer Protection Authority ’s 2022 guidelines and holding that such a levy infringes upon consumer rights. Eateries can’t impose service charge, rules Delhi high court The ruling, delivered by justice Prathiba M Singh, entitles customers to pay only …

Is it time for restaurants to ditch optional service charges? Join The Independent Debate
5 months, 3 weeks ago

Is it time for restaurants to ditch optional service charges? Join The Independent Debate

The Independent  

Stay ahead of the curve with our weekly guide to the latest trends, fashion, relationships and more Stay ahead of the curve with our weekly guide to the latest trends, fashion, relationships and more Stay ahead of the curve with our weekly guide to the latest trends, fashion, relationships and more SIGN UP I would like to be emailed about …

OK, But What Are The Service Charges On My Restaurant Bill?
7 months ago

OK, But What Are The Service Charges On My Restaurant Bill?

Huff Post  

igor kisselev, www.close-up.biz via Getty Images One type of extra fee that’s becoming common in the hospitality world is a “service charge.” It seems like the cost of going out to eat at a restaurant is always a hot topic for debate; between rising prices, gratuity requests popping up at counter-service spots and seemingly random surcharges, many diners now find …

Restaurant service fees are staying after all with Newsom signature of last-minute bill
9 months ago

Restaurant service fees are staying after all with Newsom signature of last-minute bill

LA Times  

The last-minute law, said co-author Sen. Bill Dodd, will ensure “restaurant customers are not shocked when they get their checks.” Those 3, 5 and 20% fees at the bottom of your menu could be here to stay. I think it’s a huge relief, just to have one less thing being thrown at them right now.” Navarrette spent weeks campaigning for …

In 11th-hour reversal, state Senate passes emergency bill to exempt restaurants from service-fee ban
9 months, 1 week ago

In 11th-hour reversal, state Senate passes emergency bill to exempt restaurants from service-fee ban

LA Times  

Surcharges such as employee service fees and healthcare percentages are set to disappear from California menus and receipts July 1. An emergency measure that would allow restaurants, bars and other food sellers to continue to charge service fees unanimously passed the California State Senate on Thursday, days before the practice is scheduled to be outlawed. In early June Dodd proposed …

Restaurants may be able to keep service fees if menu shows the charges
9 months, 3 weeks ago

Restaurants may be able to keep service fees if menu shows the charges

LA Times  

A new state law to prohibit hidden surcharges and other “junk fees” tacked onto customers’ bills is slated to go into effect July 1, with businesses having to include those charges in the prices they post or advertise. Under the proposal by Sen. Bill Dodd, restaurants could continue to add surcharges, mandatory gratuities or fees to diners’ bills instead of …

California is making restaurants tell the truth about prices. Will it give you sticker shock?
10 months, 3 weeks ago

California is making restaurants tell the truth about prices. Will it give you sticker shock?

LA Times  

Starting July 1, restaurants will join thousands of other California businesses that are required to include all mandatory fees and charges in the prices they display or advertise. Starting July 1, restaurants will join thousands of other California businesses, including event ticket sellers, short-term rental apps, hotels and food delivery services, that are required to include all mandatory fees and …

Perch charges diners ‘security’ fee at downtown L.A. rooftop spot, sparking outrage
11 months, 3 weeks ago

Perch charges diners ‘security’ fee at downtown L.A. rooftop spot, sparking outrage

LA Times  

A view of Perch’s bar space on the 15th floor looking out at the downtown Los Angeles skyline. “Courts have repeatedly indicated that restaurant menus are not ‘ California L.A. County accuses Grubhub of ‘bait-and-switch’ with last-minute fees County lawyers say the food delivery company has flouted state laws barring false advertising in promoting meals for less than the amount …

This Reddit list is tracking L.A. restaurants charging ‘service fees’
1 year, 7 months ago

This Reddit list is tracking L.A. restaurants charging ‘service fees’

LA Times  

Patrons eat lunch at Jon & Vinny’s restaurant in Brentwood. This is to say nothing of service charges, typically ranging from 3% to 20%, that are tacked onto restaurant customers’ bills with various disclaimers, some more opaque than others, such as “healthcare surcharge,” “competitive industry compensation” and “wellness fee.” A Google spreadsheet circulating in Reddit’s Los Angeles group has gained …

‘Deceiving and disgusting’: Readers react to the rise of restaurant service fees
1 year, 9 months ago

‘Deceiving and disgusting’: Readers react to the rise of restaurant service fees

LA Times  

A class-action lawsuit was filed in Los Angeles Superior Court on June 20 by former servers at Jon & Vinny’s, a hip Italian American restaurant owned by Jon Shook and Vinny Dotolo, with locations in Fairfax, Beverly Hills and View Park-Windsor Hills. So one knows exactly what to expect — and so do the employees.” — Peter M. Graf “Restaurant …

Scuffle over service charge: To pay or to not pay?
1 year, 9 months ago

Scuffle over service charge: To pay or to not pay?

Hindustan Times  

Recently, a scuffle broke out between a group of diners and staff at Float by Duty Free, a restaurant in Noida, over the latter levying a service charge of ₹970 on a bill of ₹11,209. This incident is the latest of many to bring the contentious issue of service charge into the limelight, raising questions about its legality and lack …

HC: Dont display verdict allowing service charge on restaurant menus
1 year, 11 months ago

HC: Dont display verdict allowing service charge on restaurant menus

Hindustan Times  

The Delhi high court on Wednesday clarified that its interim order, allowing restaurants across the country to automatically charge service charge above the bill, will not be displayed on the menu cards or on display boards in a manner to mislead the consumers that service charge has been finally approved by the court. The court’s clarification came while hearing pleas …

On row over service charge at restaurants, Delhi high court has a suggestion
1 year, 11 months ago

On row over service charge at restaurants, Delhi high court has a suggestion

Hindustan Times  

NEW DELHI: The Delhi high court on Wednesday told restaurant owners not to display the court’s interim order relating to a service charge on their menu cards or display boards in a manner to mislead the consumers that the service charge has been finally approved by the court. Justice Pratibha Singh took note of ASG Chetan Sharma’s submission that restaurants …

Free from fees? California bill combats ‘junk’ fees for everything from concert tickets to groceries
2 years, 1 month ago

Free from fees? California bill combats ‘junk’ fees for everything from concert tickets to groceries

LA Times  

California lawmakers introduced legislation Tuesday that would prohibit companies from hiding mandatory fees that lawmakers described as a “deceptive advertising practice.” California lawmakers introduced legislation Tuesday aimed at fighting hidden or “junk” fees for everything from concert tickets to groceries. Senate Bill 478 would prohibit companies from hiding mandatory fees that lawmakers described as a “deceptive advertising practice.” “We all …

Why restaurants should recover service charges from consumers as 'additional', 'separate levy', asks Delhi HC
2 years, 7 months ago

Why restaurants should recover service charges from consumers as 'additional', 'separate levy', asks Delhi HC

India TV News  

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 …

HC stays guidelines prohibiting levying of service charge by restaurants
2 years, 8 months ago

HC stays guidelines prohibiting levying of service charge by restaurants

The Hindu  

The Delhi High Court on July 20 stayed the recent guidelines issued by the Central Consumer Protection Authority banning restaurants and hotels across the country from levying service charge by adding it along with the food bill. The high court said that CCPA’s guidelines, which effectively barred restaurants and hotels from adding service charge automatically or by default in the …

HC stays guidelines prohibiting levying of service charge by restaurants
2 years, 8 months ago

HC stays guidelines prohibiting levying of service charge by restaurants

Firstpost  

Justice Yashwant Varma, while dealing with petitions challenging the Central Consumer Protection Authority’s 4 July guidelines, said the issue requires consideration and directed the authorities to file their reply. New Delhi: The Delhi High Court on Wednesday stayed the recent guidelines prohibiting hotels and restaurants from levying service charge automatically on food bills. Justice Yashwant Varma, while dealing with petitions …

Staff will suffer, feels restauranteurs; customers happy
2 years, 8 months ago

Staff will suffer, feels restauranteurs; customers happy

Hindustan Times  

On Monday, the Central Consumer Protection Authority prohibited eateries from automatically or by default levying service charges on food bills. As Central Consumer Protection Authority has prohibited eateries from automatically or by default levying service charges on food bills, restaurateurs feel this isn’t in the welfare of their staff. Umang Tewari, owner, Local, Junkyard and Liv Bar, says, “The service …

Customers happy, restaurateurs upset over removal of service charges
2 years, 8 months ago

Customers happy, restaurateurs upset over removal of service charges

The Hindu  

While the Central Consumer Protection Authority’s recent announcement which tagged service charges “unfair” has sparked joy among bill paying consumers, the same is not the case for those who own and run hotels and restaurants. To protect consumer interest on behalf of our hotel owners, we welcome this decision and also advise all our members to do the needful.” The …

Next time hotels, restaurants add service charge to your bill, just dial this number
2 years, 8 months ago

Next time hotels, restaurants add service charge to your bill, just dial this number

India Today  

In a relief for customers, the Central Consumer Protection authority under the Department of Consumer Affairs has barred hotels and restaurants from levying service charges automatically or by default on food bills. So, next time if a hotel or restaurant adds a service charge to your bill, don't pay the extra amount, as the CCPA has also allowed customers to …

Levied with a service charge at an eatery? Here’s what you can do
2 years, 8 months ago

Levied with a service charge at an eatery? Here’s what you can do

Firstpost  

The government has enabled customers to file complaints in case of violations after they stipulated that the service charge levied by restaurants and eateries was an ‘unfair trade practice’ Eating out in the country just got cheaper — almost by 10 per cent! On 4 July, the Central Consumer Protection Authority barred hotels and restaurants from levying service charge automatically …

Hotels, restaurants barred from levying service charge
2 years, 8 months ago

Hotels, restaurants barred from levying service charge

India Today  

The Central Consumer Protection Authority on Monday barred hotels and restaurants from levying service charge automatically or by default in food bills and allowed customers to file complaints in case of violation. Amid rising complaints, the CCPA has issued guidelines for preventing unfair trade practices and violation of consumer rights with regard to levying of service charge. As per the …

Hotels, restaurants cannot force consumers to pay service charge. It's voluntary
2 years, 8 months ago

Hotels, restaurants cannot force consumers to pay service charge. It's voluntary

Hindustan Times  

Hotels and restaurants are now barred from levying service charges automatically or by default on food bills, the Central Consumer Protection Authority said on Monday, adding customers will be allowed to file complaints in case of violation. The service charge can also not be collected by adding it along with the food bill and levying the Goods and Services Tax …

Service Charge Cannot be Added by Default by Hotels, Restaurants; CCPA Issues Guidelines
2 years, 8 months ago

Service Charge Cannot be Added by Default by Hotels, Restaurants; CCPA Issues Guidelines

News 18  

The Central Consumer Protection Authority, or CCPA, has on Monday issued an order barring hotels and restaurants from adding service charge automatically or by default in the food bill. The top consumer authority on the day issued guidelines for preventing unfair trade practices and violation of consumer rights with regard to levying of service charge in hotels and restaurants. “The …

Why there is a debate over service charge in restaurants
2 years, 9 months ago

Why there is a debate over service charge in restaurants

India Today  

Working in the hospitality industry is not easy. That the service charge attracts GST further confirms this,” says Anurag Katriar, trustee at NRAI, and founder and managing director, Indigo Hospitality Pvt Ltd. Katriar finds the argument that menu prices be increased instead of levying service charge separately “misplaced”. From my experience, at our restaurants, only one in ten guests debates …

As Service Charge Is Being Opposed, Will Restaurants Go For Price Hikes?
2 years, 9 months ago

As Service Charge Is Being Opposed, Will Restaurants Go For Price Hikes?

News 18  

As the consumer affairs ministry has already called levying the service charge illegal, restaurants are saying it’s very much legal until the final rules come in. Last week, during a meeting with restaurant and hotel bodies, consumer affairs secretary Rohit Kumar Singh said that even as restaurant associations claim the practice of levying service charge is legal, the consumer affairs …

Service Charge Levied by Restaurants is Legal in India? Here Is What We Know
2 years, 9 months ago

Service Charge Levied by Restaurants is Legal in India? Here Is What We Know

News 18  

A row has recently sparked up regarding the act of restaurants levying service charges on customers with the consumer affairs ministry calling for a robust framework, and the restaurants saying that the same is very much legal in India until further notice. The department of consumers affairs has called levying service charge by restaurants an “unfair trade practice”, but there …

Eateries hint at legal face-off with government over service charge
2 years, 9 months ago

Eateries hint at legal face-off with government over service charge

Hindustan Times  

Restaurants will not be able to force diners to pay a service charge, according to new rules being framed by the ministry of consumer affairs, but eateries aren’t conceding yet. Restaurants and hotels can “raise prices but cannot levy service charges without the customer’s explicit consent”, commerce and consumer affairs minister Piyush Goyal said on Friday. On Thursday, the government …

Eateries, govt lock horns on service charge
2 years, 9 months ago

Eateries, govt lock horns on service charge

Hindustan Times  

New Delhi: Restaurants will not be able to force diners to pay a service charge, according to new rules being framed by the consumer affairs ministry but eateries aren’t conceding yet. Union commerce and consumer affairs minister Piyush Goyal on Friday said restaurants and hotels can “raise prices but cannot levy service charges without the customer’s explicit consent”. On June …

Service charge issue: Restaurants body, owners says govt's move unfortunate
2 years, 9 months ago

Service charge issue: Restaurants body, owners says govt's move unfortunate

Firstpost  

The government’s move will be a ‘loss’ to the ordinary staffers only. It is meant for the staff who render services to guests and divided among all the serving staff at a restaurant, which they receive it over and above their salaries, said NRAI president Kabir Suri New Delhi: A national food industry body and several restaurant owners on Friday …

Restaurants can’t impose ‘service charge’ to food bills: Piyush Goyal
2 years, 9 months ago

Restaurants can’t impose ‘service charge’ to food bills: Piyush Goyal

The Hindu  

Food and Consumer Affairs Minister Piyush Goyal on June 3 asserted that restaurants cannot add ‘service charge’ to the food bills, though customers at their discretion can give “tips” separately. On June 2, the consumer affairs ministry said the government will soon come out with a legal framework to stop restaurants from imposing service charges on customers as the practice …

Explaining service charge by restaurants and the unsavoury row over it
2 years, 9 months ago

Explaining service charge by restaurants and the unsavoury row over it

Firstpost  

The restaurant association in India and the government are at loggerheads over service charge. Terming the service charge illegal at restaurants, the consumer affairs ministry has asked the National Restaurant Association of India to immediately stop the practice. The department, which comes under the Ministry of Consumer Affairs, Food, and Distribution, had chalked the guidelines after noticing that some hotels …

Centre to come up with framework to check service charge levied by restaurants
2 years, 9 months ago

Centre to come up with framework to check service charge levied by restaurants

Firstpost  

Service charge is used by restaurants/hotels to pay the staff and workers and is not charged for the experience or food served to consumer New Delhi: The Department of Consumer Affairs will soon come up with a robust framework to ensure strict compliance by the stakeholders with regard to service charge levied by restaurants and hotels as it adversely affects …

To Pay or Not? News18 Decodes the Service Charge in Restaurant Bills & Why is it 'Illegal'
2 years, 9 months ago

To Pay or Not? News18 Decodes the Service Charge in Restaurant Bills & Why is it 'Illegal'

News 18  

The Department of Consumer Affairs has observed that restaurants levying service charge from customers as the practice is an “unfair trade practice”. However, consumer organisations observed that levying service charge is patently arbitrary and constitutes an unfair as well as restrictive trade practice under the Consumer Protection Act. Further, considering entry of a customer to a restaurant/hotel as an implied …

Centre will bar restaurants from levying service charge
2 years, 9 months ago

Centre will bar restaurants from levying service charge

Hindustan Times  

The government will frame new rules, along with a legal framework, to prevent restaurants from levying service charge on diners, which is an “unfair trade practice”, consumer affairs secretary Rohit Kumar Singh said on Thursday. Consumers often mix up “service charge” imposed by eateries with service tax, which is a statutory levy under the Goods and Services Tax or GST, …

Levying service charge legal, restaurant associations tell Consumer Affairs Department
2 years, 9 months ago

Levying service charge legal, restaurant associations tell Consumer Affairs Department

The Hindu  

In a meeting called by the Department of Consumer Affairs on Thursday to seek clarification on restaurants levying service charge “by default” on consumers, the National Restaurants Association of India and The Federation of Hotel & Restaurant Associations of India clarified that there was no illegality in levying such a charge. The association also said that various judicial orders have …

Centre to formulate legal framework to stop eateries from levying service charge
2 years, 9 months ago

Centre to formulate legal framework to stop eateries from levying service charge

Firstpost  

Consumer organisations observed that levying service charge is patently arbitrary and constitutes an unfair as well as restrictive trade practice under the Consumer Protection Act New Delhi: The government will soon come out with a legal framework to stop restaurants levying service charge from customers as the practice is “unfair”, Consumer Affairs Secretary Rohit Kumar Singh said on Thursday. Consumer …

Service Charge By Restaurants Illegal, Says Govt; Asks NRAI To Immediately Stop It
2 years, 9 months ago

Service Charge By Restaurants Illegal, Says Govt; Asks NRAI To Immediately Stop It

News 18  

The consumer affairs ministry on Thursday called the service charge levied by restaurants illegal and asked the National Restaurant Association of India to immediately stop the practice. In a letter to the NRAI recently, Department of Consumer Affairs Secretary Rohit Kumar Singh pointed out that the restaurants and eateries are collecting the service charge from consumers by default, even though …

Levying service charge not unfair trade practice: NRAI
2 years, 10 months ago

Levying service charge not unfair trade practice: NRAI

Hindustan Times  

The National Restaurant Association of India on Tuesday said that asking for service charge is not an unfair trade practice, and contended that once a customer is aware of such a charge and goes on to place an order anyway, the act of doing so becomes an agreement between the parties. It added that service charge — or fee charged …

Service charge back on Pune menus
6 years, 11 months ago

Service charge back on Pune menus

Hindustan Times  

The beginning of the financial year, April, saw the return of service charge, as restaurants and pubs across the city began charging their customers for services rendered. According to National Restaurant Association of India, service charge is a fee charged by the restaurant over and above the price of food and drink for the additional convenience of service rendered inside …

Restaurants cant fleece you any more, govt makes service charge voluntary
7 years, 11 months ago

Restaurants cant fleece you any more, govt makes service charge voluntary

India TV News  

The government has decided to issue an advisory to states asking them to crack down against unfair imposition of service charge on food and drink bills. Food and Consumer Affairs Minister Ram Vilas Paswan today said that no such thing as the service charge exists and that it was being wrongly charged. We cannot understand why we are being singled …

Service charge may soon be a thing of the past, as govt clamps down on 'unfair trade practice'
7 years, 11 months ago

Service charge may soon be a thing of the past, as govt clamps down on 'unfair trade practice'

Firstpost  

The Centre has has asked restaurants to remove service charge voluntary component levied by hotels. While service tax is a mandatory component in the restaurant’s bill, service charge by law has always been a voluntary component. Speaking about this in January, Paswan had said, “Our department’s view is that imposing service charge is an unfair trade practice and consumers need …

Service charge advisory to affect hotel business in AP
8 years, 2 months ago

Service charge advisory to affect hotel business in AP

Deccan Chronicle  

Rajahmundry: As the Centre has issued an advisory recently stating that paying service charge at the hotels and restaurants is discretionary and a majority section of customers is unwilling to pay such charge, the hotels and restaurants will be having their revenue dented in city. Though service charge is being levied ranging from 5 per cent to 20 per cent …

To service' with love, not money
8 years, 2 months ago

To service' with love, not money

Deccan Chronicle  

The worst part of dining out has to be shelling out extra bucks for bad service. Omer Faiyaz, entrepreneur and foodie adds, “Tips given to a waiter is an appreciation towards good service, it encourages them to do better, albeit restaurants shouldn’t really make it compulsory to pay tips aka service charge and neither should they consider tips as an …

How would we take care of staff without service charge: Eatery owners
8 years, 2 months ago

How would we take care of staff without service charge: Eatery owners

Firstpost  

The Department of Consumer Affairs on Monday issued a statement saying that customers dissatisfied with service at any hotel or restaurant can opt for the service charge not being levied as this is optional or discretionary. New Delhi/Mumbai: Though customers now refuse to pay the service charges levied by restaurants, the owners of the eateries have voiced their disappointment over …

Service charge: Why put the consumer in a conflict with eateries?
8 years, 2 months ago

Service charge: Why put the consumer in a conflict with eateries?

Firstpost  

The government puts the onus of deciding whether to pay service charge on the consumer. The government notification puts the onus of deciding whether to pay this ‘service charge’ or not on the consumer. The Ministry of Consumer Affairs, Food and Public Distribution hasn’t issued any prohibitory order to stop hotels and restaurants from levying service charge on bills. The …

Govt directive on service charge will lead to confusion, says industry body
8 years, 2 months ago

Govt directive on service charge will lead to confusion, says industry body

Firstpost  

Service charge is an above board practice and there are even judicial pronouncements to support that ‘service charge’ can be charged by hotels and restaurants. New Delhi: The government’s clarification that service charge on food bill is not compulsory and a dissatisfied customer can choose to have it waived will “lead to confusion and quarrels”, hotels and restaurant owners said …

Paying Service Charge ‘Discretion Of Customer’, Can Deny If Unhappy: Govt.
8 years, 2 months ago

Paying Service Charge ‘Discretion Of Customer’, Can Deny If Unhappy: Govt.

Live Law  

Those disappointed with sloppy service at restaurants need not shell out those extra few notes for ‘service charge’.The Department of Consumer Affairs said the ‘service charge’ billed in the total amount along with the taxes is only ‘optional’ and the customer has the discretion to not pay it.The department has asked the state governments to sensitise the companies, hotels. The …

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