Sukrit Kapoor Comments on Delhi High Court’s Advisory on Service Charge Terminology
In a recent Business Standard article, Sukrit Kapoor, Partner at KSK, highlighted the Delhi High Court’s advisory regarding the terminology used for service charges in restaurants and hotels.
Commenting on the ruling, he stated:
“The High Court has even ruled that the guidelines do not violate the fundamental right to trade. The High Court did however advise the CCPA to reconsider the nomenclature granted to service charge as it found the same to be misleading and suggested that terms such as tip or voluntary contribution could be used instead.”
The court’s recommendation focuses on the need for transparency in consumer transactions, ensuring that customers are not misled into believing service charges are mandatory or government-imposed. By suggesting terms like “tip“ or “voluntary contribution,” the court aims to bring more clarity to consumer billing practices.
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