According to a report by the Times of India, a Mumbai restaurant has been ordered to pay Rs 25,000 in compensation to a customer for its practice of imposing a compulsory 5 per cent service charge on its bills.
Yogesh Patki, a lawyer, filed a complaint against Girgaon-based “Cream Centre” owner Prince Cuisines Pvt Ltd. before a district consumer commission on July 21, 2017. The commission ruled against the restaurant, labeling the service charge imposed on customers as “highly objectionable as well as illegal”.
The panel criticized the restaurant’s action of levying a mandatory five percent service charge, stating that it falsely represents the services provided. The order emphasized that customers’ dining experience is comprised of a bouquet of additional services and that coercing a service charge is unjustifiable and illegal.
Additionally, the panel ordered the restaurant to refund a service charge of Rs 29 to the customer and asserted that the amount of tip and gratuity is at the discretion of the individual. The panel clarified that the hotel management has no role in determining tips and gratuity, which is entirely the customer’s prerogative.
This incident is not isolated, as it follows a trend of consumer activism against unfair practices. Recently, a Bengaluru court directed online delivery platform Swiggy to compensate a customer with Rs 5,000 for failing to deliver ice-cream worth Rs 187.
