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Euro Fintech Core > Mobile Payment > Bengaluru pub ordered to pay compensation to customer for levying ‘service charge’
Mobile Payment

Bengaluru pub ordered to pay compensation to customer for levying ‘service charge’

Marco
3 Min Read

Photo: ShakesBierre- Brewpub & Kitchen

Photo: ShakesBierre- Brewpub & Kitchen

Bengaluru: A microbrewery in Bengaluru has been ordered to pay compensation to a customer for forcing him to pay a 7.5 percent service charge, which was optional. A consumer court in the IT city asked the ShakesBierre-Brewpub & Kitchen on Brigade Road to pay Rs 500 to the customer as compensation.

A resident of Indiranagar, Sameer Annageri Krishnamurthy, received a bill from the pub which included Rs 217.9 – 7.5 percent. As per the law, service charge is optional and voluntary. He questioned why the microbrewery added an optional charge to the bill but the staff insisted that he has to pay the amount.

This incident happened in May last year and Krishnamurthy approached the Bengaluru Urban 2nd Additional District Consumer Disputes Redressal Commission in Shantinagar with a complaint against the pub. He had also complained to the ShakesBierre management about forcefully levying service charges.

The pub management claimed that they have refunded the service charges to the customer. However, the court noted that the refund was made only after the aggrieved customer filed a complaint. The commission said the complainant was entitled to compensation and asked ShakesBierre management to pay it within 30 days.

As per the Central Consumer Protection Authority (CCPA)’s guidelines to prevent “unfair trade practices” that violate consumer rights, the payment of service charges at restaurants is voluntary and at the discretion of consumers.

The order issued under Section 18 (2) (I) of The Consumer Protection Act, 2019 prohibits levying service charges by hotels or restaurants “automatically” or “by default” in the bill or collecting it under any other name.

If the service charges are added to the bill, customers can lodge complaints on the National Consumer Helpline (NCH) mobile app or by calling the number 1915 or on the e-daakhil portal. Customers can also submit a complaint to the District Collector for investigation and subsequent proceedings by the CCPA. A complaint can also be sent to CCPA’s email com-ccpa@nic.in.

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Marco January 15, 2023
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