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Jan 31 2012

Eateries banned from levying service charges

RIYADH: The Ministry of Commerce and Industry has banned restaurants and coffee shops across the Kingdom from levying any service charges on their customers.

All eateries have also been instructed to remove any description of service charges from the menu of meals and foods served by them within 60 days, according to a statement posted on the ministry's website.

The ministry's action came after it received several complaints from customers saying they were forced to pay inconsistent service charges for meals served by various restaurants and coffee shops. "The ministry has already issued a circular to all restaurants and coffee shops asking them not to levy any additional charges for meals and drinks served by them. It has also directed them to stop levying such charges anymore," the statement read.

While reiterating that levying service charges on meals does not have any legal basis, the ministry referred the new move to the royal order issued on March 18, 2011 (Rabi Al-Thani 13, 1432) directing the concerned authorities to take measures in order to curb price rises.

The ministry also reaffirmed its keenness and concern in protecting the rights of consumers. "The prices of goods should be clear to consumers. Hence, levying an additional charge whether it is a fixed amount or percentage does not have any legal basis," the statement read.

The ministry urged consumers to inform it about any violation of the directive by calling its contact center (800 1241616) or by visiting its website (mci.gov.sa).

© Arab News 2012

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