Hotels & restaurants can't levy LPG charge: Consumer protection watchdog

The Central Consumer Protection Authority (CCPA) -- the country's consumer protection regulator -- on Wednesday banned restaurants and hotels from charging LPG fees, or any type of cooking gas recovery money, from consumers. Flagging such levies as unfair trade practices, the consumer protection watchdog stated that any such act by these businesses violates laws.

"The Central Consumer Protection Authority (CCPA), established under Section 10 of the Consumer Protection Act, 2019 (hereinafter referred to as "the Act"), is mandated under Section 18 to protect, promote and enforce the rights of consumers and prevent unfair trade practices," said the regulator.

Operating under the Department of Consumer Affairs, which is part of the Ministry of Consumer Affairs, CCPA is the national regulatory body that safeguards consumer rights, curbing unfair trade practices like misleading ads and violations harming consumers as a class.

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Input costs -- including fuel, LPG, electricity or other operational expenses -- are part of the cost of running the business, and must be appropriately factored into the pricing of menu items, it noted.

Which charges can restaurants and hotels mention on their menus?

According to the watchdog, menus must clearly mention all input costs, including LPG and electricity, It also noted that levying additional charges as mandatory circumvent rules as service is inherent in the pricing.

There should be no misleading or compulsory add-ons to the menu prices, according to CCPA.

The regulator noted that the consumer must not be misled or forced to pay extra charges beyond the displayed menu price unless explicitly voluntary.​

What can the consumer do if a business charges an LPG reccovery levy?

Here's what authorities suggest the consumer can do if they find a restaurant or hotel to be in violation of the law:

• Request the hotel or restaurant to remove the charge from the bill
• Lodge a complaint via National Consumer Helpline (NCH) at 1915 or NCH app (pre-litigation redressal)
• ​File against unfair trade practice with Consumer Commission using the e-Jagriti portal (www.e-jagriti.com)
• Submit to the district collector for CCPA investigation or email com-ccpa@gov.in

Consumer complaints prompt CCPA to act

The notification comes amid growing complaints about hidden fees in the country's hospitality sector, at a time when the government has regulated commercial LPG supplies to companies in order to protect the interests of households amid disruptions in the energy market emanating from the Strait of Hormuz.

CCPA said that it has come to its notice, through grievances filed on the National Consumer Helpline (NCH), that restaurants and hotels are levying additional charges in the name of LPG charges, gas surcharge, fuel cost recovery, gas crisis charge or similar terminology in the bill by default.

Such charge, noted CCPA, is being levied in addition to the total price of the food items mentioned in the menu and applicable taxes.

However, a five-day ceasefire by the US in the Middle East conflict has eased growing concerns about the blockage of the Strait of Hormuz -- a maritime region that normally enables the passage of one-fifth of the world's oil and gas supplies.

The communication was sent to all states, UTs and their district collectors, besides the Ministry of Tourism, hotels association Federation of Hotel & Restaurant Associations of India (FHRAI), and restaurant body National Restaurant Association of India (NRAI).