The service charge pickle

Govt should not meddle with market functioning

The Department of Consumer Affairs (DCA) has recently issued a notification in which it has asked states to advise “hotels and restaurants to disseminate information… that service charges are discretionary and voluntary and a consumer dissatisfied with services can have it waived”. In essence, it is okay for a customer to refuse to pay the service charge (roughly 5-20 per cent of menu costs of the items consumed), even after consuming the meal, regardless of whether or not one enjoyed the service. The DCA consulted with one industry body, the Hotel Association of India, before issuing the ruling and it