The authority has termed the practice an unfair trade practice under the Consumer Protection Act, 2019
The central consumer protection authority (CCPA) has issued an advisory to prevent unfair trade practices relating to levy of ‘LPG charges’ and similar charges in hotels and restaurants, barring the establishments from adding default fuel-related charges.
“CCPA has taken serious note of hotels and restaurants levying additional charges such as ‘LPG charges’, ‘gas surcharge’ and ‘fuel cost recovery’ in consumer bills, terming the practice an unfair trade practice under the Consumer Protection Act, 2019,” the official statement added.
The CCPA has observed, based on grievances received on the National Consumer Helpline (NCH), and media reports, that certain hotels and restaurants are levying such charges in the consumer bill by default, over and above the price of food and beverages displayed in the menu and applicable taxes. Such practices result in lack of transparency and impose unjustified costs on consumers, the authority said.
The CCPA has clarified that input costs such as fuel, LPG, electricity and other operational expenses are part of the cost of running a business and must be factored into the pricing of menu items. Recovery of such costs through separate mandatory charges constitutes an unfair trade practice under Section 2(47) of the Act.
The statement noted that the consumers who encounter such practices may request the hotel or restaurant to remove the charge from the bill, lodge a complaint on the NCH by calling 1915 or through the NCH mobile app. Consumers may also file a complaint before the appropriate Consumer Commission through the e-Jagriti portal or submit a complaint to the district collector or directly to the CCPA.
