Re: odd restaurant pricing policy
- From: contrex <mike.j.harvey@xxxxxxxxx>
- Date: Mon, 08 Oct 2007 17:30:40 -0000
On 8 Oct, 17:32, d4g...@xxxxxxxxxxx (David Horne, _the_ chancellor
(*)) wrote:
I haven't noticed it, and I don't think I like it either.
In the UK it is illegal for restaurants to do what you describe. You
could try contacting the Westminster Council Trading Standards
Department. They are well aware of the practice.
http://www3.westminster.gov.uk/forms/emailform.cfm?AliasID=120&comments=
or at
Westmister Trading Standards
Westminster City Hall,
64 Victoria Street,
London
SW1E 6QP
[1] From Caterer & Hotelkeeper magazine, 8 - 14 April 2004:-
(quote begins)
Trading standards authorities could prosecute restaurants that
automatically add an optional or discretionary service charge to
bills.
The claim comes after investigations by trading standards officers
from seven London boroughs found all the 95 restaurants visited put a
service charge on to the bill, even though it was said to be optional.
This contravenes the legislative code of practice governing the way
prices are displayed, which could mean a maximum £5,000 fine for
offenders.
Officers also found that customers were presented with credit card
slips with the gratuity box left open in 50% of the restaurants,
despite having also paid a service charge as part of the bill.
Sue Jones, head of Westminster Trading Standards, said the survey was
commissioned in response to public complaints about both practices.
The findings are to be put forward to the Department of Trade &
Industry for inclusion in its Code of Practice for Price Indications,
due for review next year.
While Jones denied that any prosecutions were planned, they could not
be ruled out, she said: "The current code of practice does make it
clear that optional service charges should not be put directly on the
bill. We haven't any prosecutions planned but there's every
possibility there will be."
One London pub company that didn't want to be named was investigated
by trading standards officers before Christmas. The group was pulled
up on the practice of leaving tip or gratuity spaces on customer bills
"open", despite also adding a discretionary 12.5% service charge.
(Quote ends)
[2]
The Code of Practice for Price Indications (October 2006) states:-
(quote begins)
2.1 Indicating two different prices
2.1.1 The Consumer Protection Act 1987 makes it an offence to indicate
a price for goods or services which is lower than the one that
actually applies. You should not therefore show one price in an
advertisement, website, window display, shelf marking or on the item
itself, and then charge a higher price at the point of sale or
checkout. In addition, specific regulations apply to particular types
of sales and ways of selling - e.g. retail sales (including the
Internet), sales of food and drink which involve service, distance
contracts, resale of tickets, package travel, etc. Your local Trading
Standards Services or Home Authority will be pleased to advise you on
the current regulations that are relevant to your business and of any
good practice guidance which is also relevant.
[...]
2.2 Incomplete information and non-optional extras
Service, cover and minimum charges in hotels, restaurants and similar
establishments
2.2.11 Do not include suggested optional sums, whether for service or
any other item, in the bill presented to the customer. If your
customers in hotels, restaurants or similar places must pay a non-
optional extra charge, e.g. a "service charge": (a) incorporate the
charge within fully inclusive prices wherever practicable; and (b)
display the fact clearly on any price list or priced menu, whether
displayed inside or outside (e.g. by using statements like "all prices
include service").
2.2.12 It may not be practical to include some non-optional extra
charges in a quoted price; for instance, if you make a flat charge per
person or per table in a restaurant (often referred to as a "cover
charge") or a minimum charge. In such cases the charge should be shown
as prominently as other prices on any list or menu, whether displayed
inside or outside. Your local Trading Standards Service or Home
Authority can advise you further on the legislation relevant to price
marking in bars, restaurants and similar outlets.
(quote ends)
.
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