Can restaurants charge LPG surcharge amid shortage? Govt clarifies rules
What's the story
The Central Consumer Protection Authority (CCPA) has issued a stern advisory to hotels and restaurants across India. The regulator has prohibited the imposition of additional charges like LPG fees or fuel cost recovery on customer bills. Such levies have been termed as unfair trade practices under the Consumer Protection Act, 2019. The CCPA warned of strict action against non-compliance with this directive.
Consumer protection
Advisory issued to protect consumer rights
The CCPA's advisory is a major step toward protecting consumer rights. It has taken serious note of establishments levying extra costs beyond menu prices and taxes. The regulator stressed that consumers should only pay the price displayed on menus, plus applicable taxes. Any additional charges imposed by default would violate existing norms, according to the authority.
Compliance monitoring
CCPA will monitor compliance across India
The CCPA is closely monitoring compliance across the country and will take action where violations are found. The authority warned that attempts to circumvent earlier service charge guidelines by introducing alternative levies would not be tolerated. It also clarified that expenses such as fuel, LPG, and electricity are intrinsic to running a business and must not be passed on separately to customers.
Grievance redressal
Grievance redressal mechanisms for consumers
The CCPA has also outlined mechanisms for grievance redressal for consumers facing such charges. Consumers can first request the removal of the fee from their bill. If unresolved, complaints can be lodged via the National Consumer Helpline or through its mobile application. Grievances can also be filed through e-Jagriti portal or submitted to District Collector or directly to CCPA.
Supply chain
LPG supply strains amid geopolitical developments
The advisory comes amid strains in LPG supply chains due to geopolitical developments. The government noted that LPG availability "continues to be affected due to the prevailing geopolitical situation." However, it added that no supply disruptions have been reported and deliveries remain steady. In a related development, Indian Oil Corporation has resumed purchases of LPG from Iran for the first time since 2018.
Pricing transparency
CCPA's directive to eliminate hidden charges
The CCPA's latest directive reinforces its broader push for transparent pricing in the hospitality sector. By reiterating that all input costs must be embedded in menu prices, the authority aims to eliminate hidden charges and ensure consumers are not subjected to arbitrary billing practices. As enforcement tightens, restaurants and hotels may need to reassess their pricing structures to remain compliant with consumer protection norms.