Establishments dependent on LPG for cooking are experiencing surging costs and inconsistent supply, leading to reports of long lines and inflated prices in the black market.
Against this backdrop, a bill from a cafe in Bengaluru for a lemonade gained viral attention online. The bill featured a 5% ‘gas crisis charge’, which added ₹17.01 to the total after discount. With GST factored in, the final bill amounted to ₹374. Online users had mixed reactions, with some questioning the necessity of gas for lemonade and others labeling the charge as exploitative.
Restaurant owners assert that increased LPG costs are burdening their operations. Similar cases have emerged in Chennai, Gurugram, and other cities, where patrons were charged an extra ₹9 to ₹30 on items like idli, vada, and momos, according to News18 Hindi.
Is ‘gas charge’ permissible by law?
Under the Consumer Protection Act, 2019, and guidelines from the Central Consumer Protection Authority (CCPA), restaurants are only allowed to charge the displayed food price along with applicable GST.
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Service charges are optional, allowing customers the choice to refuse payment.
While no specific regulation exists about restaurants and hotels imposing a ‘gas crisis charge’ or ‘LPG charge’, such charges may be viewed as hidden and unfair costs.
Authorities have clarified that no extra fees can be added without the customer’s consent. In scenarios where businesses aim to offset increased costs, they must adjust menu prices transparently rather than instituting separate line-item fees, as reported by News18 Hindi.
What does the law say regarding unfair trade?
The Consumer Protection Act, 2019 defines “unfair trade practice” as practices that utilize “any unfair method or deceptive practice” for the purpose of promoting the sale, use, or supply of goods or services.
Section 2 (47) identifies various circumstances that portray unfair trade practices. This includes making any statements—whether orally, in writing, or electronically—that falsely represent the standard, quality, quantity, grade, composition, style, or model of goods or services.
Misrepresenting refurbished, second-hand, or old goods as new is also prohibited. Furthermore, incorrectly suggesting that goods or services have sponsorship or approval is deemed an unfair trade practice.
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Creating misleading representations about the need for or usefulness of any goods or services; and providing any warranty or guarantee not based on sufficient or proper testing also fall under unfair trade practices.
If such cases arise, the burden of proof lies with the defending party to demonstrate that any warranty or guarantee is founded on adequate testing.
How can consumers file complaints?
Consumer rights experts recommend keeping a copy of the bill and reporting such practices. Complaints can be lodged via the National Consumer Helpline (NCH) by calling 1915 or the toll-free number 1800-11-4000.
Consumers may also submit complaints through the NCH mobile app or by visiting the official portal at www.consumerhelpline.gov.in. Additionally, the CCPA provides an SMS number 8800001915 to aid consumers in filing complaints.
The CCPA has the authority to investigate these matters and impose fines of up to ₹50,000 or mandate refunds if violations are identified, according to News18 Hindi.
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