JALANDHAR, June 18: In a significant ruling protecting consumer rights, the District Consumer Disputes Redressal Commission, Jalandhar, has directed a restaurant to pay ₹15,000 as compensation to a lawyer after it was found guilty of levying a mandatory service charge on a food bill without the customer’s consent.
The Commission held that imposing a service charge without prior approval from the consumer amounts to an unfair trade practice and ordered the restaurant to refund the amount collected under the service charge besides paying compensation for mental harassment caused to the complainant.
The order was passed by a bench comprising President Harveen Bhardwaj and Members Jyotsna and Jaswant Singh Dhillon while deciding a complaint filed by advocate Sanjeev Duggal. The complaint pertained to a restaurant visit in November 2023 during which the establishment had added a service charge of ₹151 to the bill.
In its judgment dated June 4, the consumer forum observed that the restaurant had failed to obtain the customer’s consent before adding the service charge, thereby violating consumer rights.
The Commission noted that the restaurant had specifically charged a service fee and not a staff contribution, making it clear that the amount was imposed as an additional charge on the consumer without authorization.
“It is proved that the restaurant charged service charges without obtaining consent from the consumer, which constitutes an unfair trade practice,” the Commission observed, adding that the complainant was entitled to a refund of the amount and compensation for the inconvenience and mental harassment suffered.
The ruling is being viewed as an important reminder that service charges cannot be mandatorily imposed on customers and must be left to the discretion of consumers.
The Commission accordingly directed the restaurant to refund the service charge amount and pay ₹15,000 as compensation to the complainant for the unfair trade practice and the distress caused. (KNC)
