With reference to Consumer Protection framework in India consider the following statements Hotels an...........

Economic Affairs Service Sector

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With reference to Consumer Protection framework in India, consider the following statements

Hotels and restaurants can restrict entry or services to consumers based on the collection of service charges.
Central Consumer Protection Authority (CCPA) is empowered to recall unsafe goods and services.

Select the correct statement.

1 only

2 only

Both

None

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Explanation:

As per the new guidelines, hotels or restaurants are prohibited from levying extra charges automatically or by default in the bill or by any other name. Also, they are not allowed to force service charges, and must clearly inform the consumers that service charges are voluntary, optional, and at their discretion.

Most importantly, hotels and restaurants are no longer allowed to restrict entry or services based on the collection of service charges. Furthermore, hotels cannot add service charges to their bills and charge GST on the total.
CCPA is empowered to order the recall of unsafe goods and services, discontinuation of unfair trade practices and misleading advertisements.

Hence only statement 2nd is correct.