What's the impact of restaurant service charge withdrawal?
The Indian restaurant sector has been touched by several guidelines, laws, regulations, & policies.
The Indian Central Consumer Protection Authority (CCPA) announced rules on July 4, 2022, which have been a source of controversy between the CCPA & the Indian restaurant business.
These rules prevented hotels & restaurants from adding service charges automatically or collecting them.
This customer rights group came to this resort after hearing complaints regarding service fee misconduct in restaurants.
When the guidelines were issued, NRAI, FHRAI, & many restaurant owners opposed them.
This issue went to the Delhi High Court, which has yet to rule but has urged restaurants & hotels to submit service prices in writing &/or separately.
These consumer-friendly recommendations are double-edged. Restaurant owners consider the service charge their business right, but consumers have been unwilling to pay it.
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