CCPA Takes Action Against Unfair LPG Charges in Restaurants and Hotels
CCPA Addresses Unfair LPG Charges
In response to the rising trend of restaurants and hotels imposing extra fees labeled as “LPG charges,” “gas surcharge,” and “fuel cost recovery” on consumer bills, the Central Consumer Protection Authority (CCPA) has expressed serious concern. This practice has been classified as an unfair trade practice under the Consumer Protection Act of 2019. The CCPA noted that these charges are often added automatically, bypassing existing regulations regarding service fees. Consequently, the Authority has issued a new advisory under Section 10 of the Consumer Protection Act, stating that such charges cannot be applied automatically, with warnings of strict penalties for non-compliance.
Understanding the LPG Surcharge Controversy
The issue of the “LPG surcharge” gained attention amid the ongoing crisis related to LPG cylinders, exacerbated by geopolitical tensions involving Israel, the US, and Iran. Social media highlighted instances where restaurants began adding a separate “LPG surcharge” to bills in response to rising costs. A notable case emerged from Bengaluru, where a viral image of a cafe bill revealed a five percent “gas crisis charge.” This raised eyebrows, especially when a customer ordering two lemonades, priced at Rs 179 each, ended up paying Rs 374 due to an additional Rs 17 gas charge, plus GST. Consumers are left questioning the legitimacy of these extra charges and the legal framework surrounding them.
CCPA's Stance on Additional Charges
The CCPA has firmly stated that no establishment should impose “LPG charges,” “gas charges,” or similar fees automatically on bills. The prices listed on menus should reflect the final amount, excluding only applicable taxes. Consumers should not be misled into paying any additional fees that are not voluntarily accepted. The advisory emphasizes that any such charges, regardless of their name, are essentially service charges or extra fees, and their automatic application constitutes a violation of CCPA guidelines.
Consumer Guidance from CCPA
In addition to addressing the issue, the CCPA has provided guidance for consumers facing these practices. They recommend that customers request the removal of any unjustified charges from their bills. If necessary, consumers can file complaints through the National Consumer Helpline by calling 1915 or using the NCH mobile app. Complaints can also be submitted to the appropriate Consumer Commission via the e-Jagriti portal, or directly to the District Collector or the CCPA.