Mumbai: Consumer Commission dismisses complaint against Pizza By The Bay for overcharging on mineral water, citing service charge justification | Representational Image
Mumbai: The South Mumbai District Consumer Dispute Redressal Commission has dismissed a complaint filed against the Marine Drive-based restaurant Pizza By The Bay for allegedly overcharging a mineral water bottle.
The commission upheld the additional charge as part of the “service element” provided by the establishment. It ruled that hotels and restaurants offer services beyond the mere sale of goods, aligning its decision with precedents set by the Supreme Court and the Bombay High Court.
The commission observed that consumers cannot seek compensation for paying more than the Maximum Retail Price (MRP) printed on a product in such scenarios, as the charges are linked to the services rendered by the establishment.
As per the complaint comply, the complainant,Iliyaz Aziz Khan, a resident of Cuffe Parade, had visited the restaurant with his family in January 2018. Among the items ordered was a packaged drinking water bottle with an MRP of ₹19, but the restaurant charged ₹160 for it—over eight times the printed price.
When Khan raised the issue with the manager, he was informed that the bill had already been issued and was advised to take further action if he wished. Aggrieved, Khan filed a complaint before the commission.
The Restaurant’s in its defence argued that all menu prices, including that of the bottled water, were clearly displayed, and Khan was aware of them before placing the order. The restaurant maintained that the higher charge was justified as it included service elements such as ambiance and hospitality.
Further the complainant’s advocate had cited a Bombay High Court judgment in Writ Petition 2548 of 2017, which addressed the issue of MRP in hotels and restaurants. The court had clarified that restaurants are in the business of providing services, not merely selling commodities. Justice Ranjit More and Justice Anuja Prabhudessai ruled on August 13, 2018, that:
“The business of a restaurant is the rendering of ‘service’ and not the ‘sale’ of any commodity. Prices exceeding the MRP charged by hotels and restaurants are for the service provided to customers.”
The commission referred to observations made by the High Court and the Supreme Court, emphasizing the following points:
1. Hotels and restaurants do not simply sell commodities like retail stores; they provide additional services, allowing them to charge above MRP.
2. Patrons visit such establishments for an overall experience, including ambiance and hospitality, not solely to purchase goods.
3. While the Legal Metrology Act, 2009 prohibits selling commodities above MRP, the Supreme Court has clarified that charging more for items like bottled water in a hotel or restaurant setting does not violate these provisions.
4. The “service element” encompasses ambiance, hospitality, and the complete dining experience.
Based on these observations, the commission ruled that the additional charge for the bottled water was part of the overall service provided by the restaurant and dismissed the complainant’s plea, thereby informing the complainant that he was not entitled to any relief, as the higher charge was legally justified under the circumstances.
