In a move to protect consumer rights, the Central Consumer Protection Authority (CCPA) has issued a clear advisory prohibiting hotels and restaurants from adding fuel-related charges—such as LPG fees or gas surcharges—to customer bills by default.
Fuel Charges Declared an Unfair Practice
The authority has stated that automatically adding such charges amounts to an unfair trade practice under the Consumer Protection Act, 2019. These fees are often levied over and above the listed prices of food items and applicable taxes, leading to higher bills without customer consent.
The directive comes in response to multiple consumer complaints about hidden or unexplained charges being included in restaurant bills.
No Default or Hidden Charges Allowed
According to the advisory, establishments cannot impose LPG or fuel-related charges automatically. Even if these charges are labelled differently—such as “fuel recovery fee” or “gas surcharge”—they will still be treated as the same if applied without the customer’s explicit approval.
Operational Costs Must Be Built Into Prices
The CCPA has clarified that all operational expenses, including fuel, LPG, electricity, and other overheads, are part of running a business. These costs must already be factored into the menu prices.
Customers should only be charged:
- The price listed on the menu
- Applicable taxes
Any additional mandatory charge beyond this is not permitted.
Key Guidelines for Restaurants and Hotels
- No default addition of LPG or similar charges to bills
- Menu prices must remain transparent and inclusive of operational costs
- Customers cannot be forced to pay any extra, non-voluntary charges
The authority also emphasized that such charges, when imposed automatically, are treated similarly to unauthorized service charges.
Conclusion
The advisory reinforces transparency in pricing and ensures that customers are not burdened with hidden costs. Consumers are encouraged to review their bills carefully and raise concerns if any unauthorized charges are added.
