US EditionNo Extra LPG or Fuel Charges on Restaurant Bills, Says CCPA; only Menu Price & Taxes Allowed
The CCPA warns that separate fuel surcharges on bills are unfair trade practices and must be included in menu prices under the Consumer Protection Act, 2019.
- On Wednesday, the Central Consumer Protection Authority asked hotels and restaurants to stop levying fuel surcharges in food bills, directing them to factor operational costs directly into menu pricing instead.
- The CCPA acted after receiving grievances through the National Consumer Helpline and media reports, terming such charges "an attempt to circumvent the existing guidelines on service charge."
- Levying "LPG charges," "gas surcharge," or "fuel cost recovery" by default violates CCPA Guidelines dated 04.07.2022, and no hotel or restaurant shall impose these fees automatically in bills.
- CCPA Chief Commissioner Nidhi Khare stated, "Hotels and restaurants shall ensure that the price displayed in the menu is the final price, exclusive only of applicable taxes." Non-compliance may attract action under the Consumer Protection Act.
- The authority emphasized that input costs like fuel and LPG are standard operational expenses and must be incorporated into menu pricing; recovering them through separate, mandatory charges constitutes an unfair trade practice under the Consumer Protection Act.
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Centre’s advisory to hotels, restaurants: Don’t add ‘LPG charges’, ‘gas surcharge’ automatically in bills
Terming the addition of such charges “an attempt to circumvent the existing guidelines on service charge”, the Central Consumer Protection Authority advised the establishments to factor the costs into the pricing of menu items.
CCPA warns restaurants against levying gas, LPG charge
The Central Consumer Protection Authority has issued a stern warning to hotels and restaurants. They are prohibited from adding extra charges such as 'LPG charges' or 'fuel cost recovery' to customer bills. These practices are now classified as unfair trade practices. Only menu prices and applicable taxes are permitted. Strict action will be taken against establishments that violate these directives.
Fuel crisis LIVE: Consumer protection watchdog warns restaurants against levying gas, LPG charge
CCPA made it clear that only applicable taxes can be added to the price mentioned in the menu of restaurants and hotels; all input costs should be factored into the prices displayed in the menu
There was a case of charging 5% gas-crisis charge LPG Gas Crisis Charges, (Aaj Samaj), New Delhi: Amid the LPG crisis, the Central Consumer Protection Authority said that hotels and restaurants will have to include all their input costs in the prices mentioned in the menu. Hotels and restaurants will not be able to charge LPG from customers. The central government said that restaurants will be able to add only government taxes in their bills apa…
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