Man wins Rs 26,000 after restaurant adds 10% ‘undisclosed’ service charge to bill

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The Gurgaon Consumer Commission was dealing with complaint regarding 10 per cent service charge on restaurant bill. (AI-generated Image)The Gurgaon Consumer Commission directed Big Pitcher restaurant to refund a 10 per cent service charge with interest and pay Rs 15,000 compensation plus Rs 11,000 litigation costs after it included service charge on a beer tester without informing that it was chargeable.A bench of presiding member Sanjeev Jindal and members Jyoti Siwach and Khushwinder Kaur was a plea against Big Pitcher restaurant, which included unwarranted service charges of 10 per cent of the total bill amount of Rs 1236.“It becomes crystal clear that the restaurant in the present case not only committed a severe deficiency in service but also adopted an unfair trade practice in a blatant violation of the guidelines issued by the Central Consumer Protection Authority (CCPA) under Section 18(2)(1) of the Act,” the commission said on June 2.‘Restaurant levied 10 per cent service charge’The copy of the invoice dated May 15, 2024, of the meal in question clearly shows that the restaurant had levied the 10 per cent on account of the service charge in the total bill amount of Rs 1,236.Also Read | Hired helicopter misses wedding procession schedule by hours, groom wins 8 lakh payoutThe guidelines issued by the Central Consumer Protection Authority dated July 4, 2022, clearly show that it has been specifically mentioned by the CCPA in its guidelines that charging anything other than the prices of food items displayed in the menu along with applicable taxes would amount to unfair trade practice under the Act.Resultantly, the restaurant is hereby held guilty of providing deficient services as well as of adopting an unfair trade practice.The present complaint preferred by the complainant is hereby accepted with costs.Service charge, unknown person’s name billThe complainant and his friends visited the Big Pitcher, Trilium Avenue in Sector 29, Gurugram, expecting to receive professional, transparent, and quality services in the nature of food and beverages.After enjoying their meal, when the complainant requested the bill from the staff of the restaurant, to his astonishment, he noticed that the bill had been issued in the name of one Pankaj, i.e., a name completely unknown to the complainant.Also Read | Student wins Rs 25,897 after Domino’s served non-vegetarian burger in ‘veg’ box during NavratriFurther, the bill in question also included unwarranted service charges for the beer taster without informing the complainant that the beer taster was chargeable. Since the practices on the part of the restaurant were in direct violation of the guidelines issued by the Central Consumer Protection Authority, the complainant raised the concern about it, but to no avail.Significance of rulingThis judgment reinforces that automatic restaurant service charges are an “unfair trade practice” violating CCPA guidelines. It affirms that such payments are strictly voluntary and optional. By awarding compensation for mental harassment and litigation expenses, it empowers consumers to hold non-compliant businesses accountable.Story continues below this adConsumers facing similar grievances may contact the consumer helpline in their respective states (Haryana contact: 1800-180-2087) or dial the National Consumer Helpline at 1915 for assistance.Jagriti Rai works with The Indian Express, where she writes from the vital intersection of law, gender, and society. Working on a dedicated legal desk, she focuses on translating complex legal frameworks into relatable narratives, exploring how the judiciary and legislative shifts empower and shape the consciousness of citizens in their daily lives. Expertise Socio-Legal Specialization: Jagriti brings a critical, human-centric perspective to modern social debates. Her work focuses on how legal developments impact gender rights, marginalized communities, and individual liberties. Diverse Editorial Background: With over 4 years of experience in digital and mainstream media, she has developed a versatile reporting style. Her previous tenures at high-traffic platforms like The Lallantop and Dainik Bhaskar provided her with deep insights into the information needs of a diverse Indian audience. Academic Foundations: Post-Graduate in Journalism from the Indian Institute of Mass Communication (IIMC), India’s premier media training institute. Master of Arts in Ancient History from Banaras Hindu University (BHU), providing her with the historical and cultural context necessary to analyze long-standing social structures and legal evolutions. ... Read More