Hotels and restaurants charging ‘gas and fuel surcharge’ unfair practice: CCPA

New Delhi: The Central Consumer Protection Authority (CCPA) has flagged the practice of hotels and restaurants demanding or collecting additional charges — ‘LPG charges’, ‘gas surcharge’ and ‘fuel cost recovery’ — in consumer bills, terming it an unfair trade practice, the Ministry of Consumer Affairs, Food and Public Distribution said on Wednesday.

The authority said such charges are being imposed by default to bypass existing norms on service charges, and issued an advisory directing that no such fees should be levied automatically.

The ministry further stated that the CCPA also warned that violations may invite strict action under the Consumer Protection Act, 2019.

The move follows complaints received through the National Consumer Helpline (NCH) and media reports highlighting that certain establishments are adding such charges over and above menu prices and applicable taxes.

According to the regulator, such practices lack transparency and impose unjustified costs on consumers.

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

“Recovery of such costs through separate mandatory charges constitutes an unfair trade practice,” it said.

The CCPA directed that no hotel or restaurant shall levy such charges by default, and that menu prices should remain final, excluding only applicable taxes. It also stressed that consumers must not be misled or compelled to pay any additional charge that is not voluntary in nature.

The advisory reiterated that such charges, irrespective of nomenclature, are akin to service charges and their automatic levy would violate the guidelines issued on July 4, 2022.

The authority said it is closely monitoring such practices across the country and will take necessary action to safeguard consumer interests.

Consumers encountering such practices can request removal of the charge from the bill or lodge complaints through the National Consumer Helpline by calling 1915 or via its mobile application.

They can also approach the consumer commissions through the e-Jagriti portal or file complaints with district authorities or the CCPA.

IANS