Bengaluru: The Central Consumer Protection Authority (CCPA) has issued fresh guidelines, restricting all hotels and restaurants from charging arbitrary
levies such as LPG fees, gas surcharge and fuel recovery amidst the ongoing LPG crisis. The move came amidst increasing consumer complaints that restaurants and eateries across Bengaluru were adding arbitrary charges to the final bill. The CCPA, acting on the complaints, noted that the charges were being imposed over and above the menu prices and taxes, and often in violation of the norms on service charges. The central authority said that the costs must instead be built into the menu pricing and not passed on as a separate add-on charge to the customer. Expenses such as fuel, LPG, and electricity are part of business operations, and cannot be charged separately as add-ons. Any such levy would be a violation of the existing rules and regulations issued in July 2022, and an unfair trade practice under the Consumer Protection Act, 2019.
Restaurant associations say they will consider CCPA guidelines. GK Shetty, of Bangalore Hotels' Association, said: "We've received the (CCPA) circular, and what restaurants are doing is clearly wrong. Since this is a central directive, LPG or similar charges cannot be levied under the law. We are also planning to issue a circular to all our member restaurants, making it clear that such charges cannot be imposed. As menus are decided individually, establishments may consider a reasonable price revision of 5-10% if they are facing losses, or rationalise their menus to manage costs. But charging LPG fees separately is completely unacceptable, and we do not support it."
Veerendra Kamat of Kamat Hotels, agreed, "Over the past month, sales have dropped 30%, forcing many of us to cut down menus and operating hours. Items like dosas, which were earlier available all day, are now limited to only mornings and evenings as they consume a lot of LPG. We cannot absorb the entire burden. While we need around five cylinders a day, we are currently getting only two. Some rationalisation is unavoidable, and we are considering a 5-10% price hike as passing the entire cost on to customers isn't fair either."
Others, however, say the rules are not fair. "This is not at all fair on small eateries like us. When we hike prices, customers won't come. But when airlines charge for fuel separately, why shouldn't we levy LPG charges? Why are we the only ones being questioned?" one restaurant owner asked.
