News > Centre says service charge levied by restaurants is illegal

Centre says service charge levied by restaurants is illegal

The government will soon come out with a legal framework to stop restaurants levying service charge from customers as the practice is “unfair”, Consumer Affairs Secretary Rohit Kumar Singh said on Thursday.

Singh said that although the associations claim the practice is legal, the Department of Consumer Affairs is of the view that it adversely affects the rights of the consumers and it is an “unfair trade practice”.