NEW DELHI — India’s consumer watchdog has warned hotels and restaurants against adding “gas surcharge” or similar fees to customer bills, calling the practice unfair and potentially illegal.
The Central Consumer Protection Authority (CCPA), under the Ministry of Consumer Affairs, said Wednesday that charges labeled as “LPG charges,” “gas surcharge,” or “fuel cost recovery” are being imposed by some establishments by default, in violation of consumer protection norms.
The authority issued an advisory directing that such fees must not be levied automatically and cautioned that violations could invite action under the Consumer Protection Act, 2019.
The move follows complaints received through the National Consumer Helpline, as well as media reports highlighting that certain restaurants and hotels were adding these charges on top of menu prices and applicable taxes.
According to the regulator, these practices lack transparency and unfairly increase the cost for consumers.
“Recovery of such costs through separate mandatory charges constitutes an unfair trade practice,” the authority said, noting that operational expenses such as fuel, LPG, and electricity are part of a business’s overall costs and should already be reflected in menu pricing.
The CCPA emphasized that menu prices should be final, excluding only applicable taxes, and that customers must not be misled or compelled to pay additional non-voluntary charges.
It also clarified that such fees, regardless of how they are labeled, are effectively similar to service charges and fall under existing guidelines issued on July 4, 2022, which prohibit automatic levies.
The authority said it is closely monitoring compliance across the country and will take necessary action to protect consumer interests.
Consumers who encounter such charges can ask for them to be removed from their bill or file complaints through the National Consumer Helpline by calling 1915 or using its mobile application. Complaints can also be lodged with consumer commissions through the e-Jagriti portal or with district authorities and the CCPA directly. (Source: IANS)
