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To protect diners from hidden costs, the Central Consumer Protection Authority (CCPA) has warned hotels and restaurants against levying additional charges such as “LPG charges”, “gas surcharge” or “fuel cost recovery” on customer bills.
The authority has made it clear that such charges are not legally permissible when imposed by default and could invite strict action, reported The Times of India.
What Triggered the Crackdown?
The advisory comes after the CCPA observed a growing number of complaints from consumers. Inputs from the National Consumer Helpline (NCH), along with media reports, indicated that several eateries were adding such charges over and above the listed menu prices and applicable taxes.
Authorities noted that these charges were often applied automatically, leaving consumers with little choice but to pay.
Why ‘LPG Charges’ Are Not Allowed
The CCPA, invoking provisions of the Consumer Protection Act, stated that costs such as fuel, LPG, electricity and other operational expenses are part of running a business and must already be factored into menu pricing.
In simple terms, what you see on the menu is what you should pay, apart from applicable taxes.
The watchdog emphasised that customers should not be misled or compelled into paying additional charges that are neither transparent nor voluntary. Imposing such fees by default has been categorised as an “unfair trade practice”.
A Backdoor Service Charge?
The authority also flagged concerns that such charges may be used to bypass existing guidelines on service charges.
By labelling costs as “fuel” or “gas recovery”, some establishments may be attempting to recover expenses in a manner that avoids scrutiny, effectively passing on operational costs directly to customers.
What Happens If Restaurants Don’t Comply?
The CCPA has issued a clear warning: any violation of these guidelines could lead to strict action.
This means restaurants continuing to add such charges risk regulatory scrutiny and penalties under consumer protection laws.
What Can Consumers Do?
Consumers who notice such charges on their bills are not without recourse.
The CCPA has advised that diners can request that the establishment remove the charge. If the issue is not resolved, complaints can be lodged via the National Consumer Helpline by calling 1915 or through its mobile application.
Additionally, consumers can file a formal complaint before the appropriate consumer commission through the e-Jagriti portal.
The latest advisory reinforces a broader push towards pricing transparency in the hospitality sector. For consumers, it serves as a reminder to check bills carefully and question any unfamiliar charges.
For restaurants, it signals that operational costs must remain embedded within menu prices, rather than being passed on through add-ons that could be deemed misleading.
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