NEW DELHI: The Central Consumer Protection Authority (CCPA) on Wednesday warned of action against restaurants and hotels that charge charges such as ‘LPG charges’, ‘gas surcharge’ and ‘fuel cost recovery’ in consumer bills, terming any additional bill headers an unfair trade practice under the Consumer Protection Act.
The consumer rights watchdog has issued an advisory under Section 10 of the Consumer Protection Act 2019, asking companies to refrain from charging illegal fees, saying breaches would warrant “strict action”.
Consumer Affairs Minister Nidhi Khare said any fuel-related charges may constitute an unfair trade practice under the law, according to the advisory, adding that monitoring has been intensified in all cities.
The advisory noted that complaints had been received on the National Consumer Helpline that some companies “impose such fees in the consumer’s bill by default, in addition to the prices of food and beverages displayed on the menu and applicable taxes.”
“It is reiterated that input costs, including fuel, LPG, electricity or other operational expenses, are part of the cost of running a business and must be appropriately taken into account in the pricing of menu items. These costs are recovered through separate mandatory charges levied on consumers’ amounts,” the directive said.
“No hotel or restaurant may charge LPG surcharge, gas surcharge or similar fees by default or automatically in the bill,” the warning read.
