Experts stress that many people fail to question these extra costs because they either aren’t aware of it or don’t want to argue over small amounts. However, these charges add up over time.
Hyderabad: Everyday consumers end up being tricked into paying for things they never intended to buy or services they never intended to receive. Whether it's a water bottle at a restaurant, an unexplained service charge or a parking fee at a shopping mall, many people don't question these charges either out of habit or lack of awareness or resolve to fight making them an easy target for businesses looking to make an extra profit. Experts claim that these amounts may seem small but add up over time.
Recently, the Delhi High Court ruled that service charges at restaurants are voluntary and cannot be made mandatory. The court rejected a plea by the National Restaurant Association of India and the Federation of Hotels, confirming that the Central Consumer Protection Authority (CCPA) has the power to take action against such unfair trade practices.
Many restaurants add service charges to bills without informing customers, even though tipping should be a personal choice. “People who know about it ask to remove the service charge, but many aren’t even aware that they can refuse to pay. People must remember that service is provided for free at every restaurant,” said Narayana Reddy, Member of Hyderabad District Consumer Disputes Redressal Commission III.
However, restaurant owners argued that they do not hide the charge. They claimed that though they don’t directly inform the customers about the service charge, they mention it on the bills that service charges are optional, and the menu also states it.
Another common issue is the overpriced self-branded water bottles in restaurants. When waiters ask if customers want their self branded water bottle, many say yes, assuming it's the only option, only to find it added to their bill later. “Once, at a restaurant in Vanasthalipuram, I agreed for their water bottle as I'm not aware that regular water was available for free,” K. Tejaswi, a consumer, shared her experience. “They give their self-branded water bottles for which they charge `20-40 extra.”
While consumer experts stress that companies must communicate pricing clearly so that consumers can make informed decisions, restaurant owners say customers prefer their branded water bottles over regular water due to hygiene concerns.
“Post-Covid, most customers started to believe that regular water may not be hygienic. To ensure our self branded water bottles meet safety standards, we check for the PPM (Parts Per Million) levels and sedimentation levels after receiving the bottles from certified water purifiers,” said Ashish Reddy, managing director of Antera Kitchen.
“People mostly believe that regular water will be contaminated, though we maintain hygiene. This is the main reason for customers to buy our branded bottles,” said an owner of Telangana Spice Kitchen, who chose to be anonymous. He revealed that they charge `40-50 on their branded water bottles.
Some shopping malls charge for parking even though government rules in some cities state that customers should not be charged if they buy something there. “Earlier, when the government intervened, all the malls stopped charging, but over time, some have started charging `40-`50. Most people don’t argue over small amounts,” said Dr. G S Sood, a consumer rights activist and president of Society for Consumers' & Investors' Protection (SCIP).
Malls defend these charges, claiming that the parking is provided for free. “We provide free parking but check for bills and carry bags to ensure that the parking is only used by the customers who go shopping inside,” said the floor manager at South India Shopping Mall, Kothapet.
Another common extra charge is for carry bags. While branded bags are often given for free, non-branded bags come at cost. “We charge `8-12 for our non-branded carry bags and the charge differs from mall to mall, but customers can bring their own carry bags to avoid the charge,” said Bhaskar, Manager at Trends, Vanasthalipuram. Narayana Reddy stated that since the malls ask if customers need to carry bags in advance, he suggested the consumers to utilise their “right to choose” and carry their own bags. Consumer experts have also noted that the earlier practice of handing out chocolates instead of `2 or `5 coins at retail stores had reduced a lot in the digital age, however, they suggest consumers to be still cautious.
Experts stress that many people fail to question these extra costs because they either aren’t aware of it or don’t want to argue over small amounts. However, these charges add up over time.
“Consumers need to be smart in this digital age. Don’t accept unfair prices anywhere, anytime and don’t hesitate to demand your rights,” suggested Dr. G S Sood. He also recommended forming Resident Welfare Associations (RWAs) in every area to address consumer issues locally, along with other issues. He further stated, “Consumer momentum needs to be created to raise awareness among the consumers about their rights.”
