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2022 (7) TMI 970 - DELHI HIGH COURTValidity of Guidelines which have been issued by the Central Consumer Protection Authority [CCPA] - levy of a service charge in addition to the total price of the food items mentioned in the menu - Section 2(47) of the Consumer Protection Act, 2019 - HELD THAT:- The petitioners contend that various settlements came to be entered into between the workmen and individual establishments, awards came to be rendered by industrial adjudicators and those would clearly be upset if the impugned Guidelines were to be implemented - On a more fundamental plane, the Court notes that there would be a serious doubt whether the issue of pricing and the levy of a service charge would fall within the ambit of Section 2(47) of the Consumer Protection Act, 2019 itself. An identical issue of whether the levy of a service charge would amount to a restricted or unfair trade practice came up for consideration before the erstwhile Monopolies and Restrictive Trade Practices Commission in S. S. Ahuja vs. Pizza Express [2001 (12) TMI 903 - MONOPOLIES AND RESTRICTIVE TRADE PRACTICES COMMISSION NEW DELHI] where it is held that There is thus no unfair practice or deceptive method adopted by the respondent as contended by the complainant. In fact the extra levy at 9% would act as a disincentive to the promotion of sales, which is a pre-requisite condition for holding the trade practice to be unfair. The matter requires consideration. Consequently, and till the next date of listing the directions as contained in paragraph 7 of the impugned Guidelines of 04 July 2022 shall remain stayed subject to the following conditions: - (1) The members of the petitioner Association shall ensure that the proposed levy of a service charge in addition to the price and taxes payable and the obligation of customers to pay the same is duly and prominently displayed on the menu or other places where it may deemed to be expedient. (2) The members of the petitioner Association further undertake not to levy or include service charge on any “take away” items. List again on 25.11.2022.
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