- JEDDAH: The Consumer Protection Association (CPA) is calling on entrepreneurs in the hospitality sector in Saudi Arabia and neighboring GCC countries to ban the practice of collecting of service charges.
They say these unlawfully add 15-20 percent to a consumer's bill.
“We need to pass a resolution to prevent the owners of restaurants, cafes, hotels and furnished apartments from the collection of and waste of consumer's money. Service fees are a violation of consumer's rights,” Nasser Al-Tuwaim, chairman of the CPA, said in a statement.
He added that the CPA’s request is only fair, as many neighboring countries such as Kuwait and the United Arab Emirates have already issued resolutions banning the collection of additional fees for services.
“Tough decisions were made to stop such fees. The adoption of penalties for offenders has eliminated the practice altogether,” Al-Tuwaim explained.
It has been nearly a year since Abu Dhabi’s Department of Economic Development slapped a ban on non-tourist establishments, which were previously allowed to charge 10 percent for service.
The department then sent out inspectors and called on consumers to report any restaurants defying the ban. To date only restaurants and hotels holding tourism licenses in Abu Dhabi are allowed to implement service charges.
