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Sick of having to pay the service charge despite unsatisfactory services at restaurants? Rejoice, for now you won’t have to pay the additional service charges if you don’t find the experience satisfactory.

After witnessing people expressing displeasure at being made to pay service charges at hotels and restaurants despite unsatisfactory service, the government decided to take action. This was charged in lieu of tips and ranged between 5 to 20 percent and was proving to be a big burden on people’s pockets causing displeasure among them.

In wake of the complaints, the Department of Consumer Affairs demanded clarification from the Hotel Association of India, which replied that the ‘service charge is completely discretionary and should a customer be dissatisfied with the dining experience he or she can have it waived off.’

This issue was taken up by the Consumer Affairs and Food Minister Ram Vilas Paswan, who tweeted, "Restaurants (sic) are billing service charges in addition to taxes. Service charge is optional. Consumer has a discretion to pay or not.”
You can follow the conversation here.

Following this reply, the Department of Consumer Affairs issued a notification asking the states to “advise hotels and restaurants to disseminate information through display at the appropriate place in the hotels and restaurants that the service charges are discretionary and voluntary and a consumer dissatisfied with the services can have it waived off".

This was done under the Consumer Protection Act of 1986 which states that ‘a trade practice which, for the purpose of promoting the sale, use or the supply of any goods or for the provision of any service, adopts any unfair method or deceptive practice, is to be treated as an unfair trade practice and that a consumer can make a complaint to the appropriate consumer forum established under the Act against such unfair trade practices.’