Put placards stating service charge is voluntary, Delhi eateries told

Cracking the whip on hotels and restaurants which force consumers to pay service charge, the Delhi government has issued instructions to all eateries to put a placard on their premises which states 'Service charge is voluntary'.

In January, the Ministry of Consumer Affairs, Food and Public Distribution had made it clear that service charges on a bill in an eatery was not compulsory and a customer can choose to have it waived off if not satisfied with the experience.

However, there were complaints that some restaurants and hotels in the city were making all customers pay service charges whether or not they were satisfied with the service.

"The (Delhi government's) Department of Excise, Entertainment and Luxury Tax has issued instructions to hotels and restaurants in the city to display at the appropriate place in their premises that service charges are discretionary and voluntary.

"A customer, who is dissatisfied with the services, can have it waived off," a senior state government official said.

The official further said that strict action will be taken against violators, adding that the consumer can make a complaint against such "unfair trade practices".

The Centre had asked states to ensure that eateries disseminate the information that service charge isn't mandatory through displays on their premises.