Unit 5- Consumer Protection Law Affecting Hotels

Definitions – Consumer, Complaint, Defect in goods, Deficiency in service, Unfair trade practice, Restricted trade
practice; Procedure for Redressal of grievances before District Forum, State Commission, and National
Commission.(All
the above topics is already given to the students in previous notes
under the Unit- Consumer Protection Act)
Q1 = Explain in brief “No Smoking Laws”?

NO SMOKING LAW

Cigarettes and other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and
Commerce, Production, Supply and Distribution) Act, 2003

           
Prohibition of smoking in a public place
The owner or the manager or in charge of the affairs of a public place in hotels and restaurant- shall display prominently a board, of a
minimum size of 60 cm by 30 cm in the Indian languages(s)
At least one should be at the entrance of the public place and one at noticeable place(s) inside, containing the warning  “No Smoking Area-
Smoking here is an offence “.

Prohibition in the hotel

 The owner or the manager or in charge of the affair of a hotel having thirty rooms or restaurants having seating capacity of thirty
persons or more shall ensure that, The smoking and non-smoking areas are physically separate.
 The smoking area shall be located in such manner that the public is not required to pass through it in order to reach the non-
smoking area.
 Each area shall contain boards indicating thereon “Smoking Area/Non-Smoking area”.

 Prohibition of advertisement of cigarette and other tobacco products

1. The size of the board used for advertisement for cigarettes and any other tobacco products should be displayed at the entrance or
inside a hotel where cigarettes and any other such tobacco products are offered for distribution or sale.

2. The display shall not exceed 90 cm by 60 cm and number of such boards shall not exceed two.

3. Each such board shall contain in the Indian language as applicable, one of the following warning, namely: -

 Tobacco Causes Cancer, or

 Tobacco Kills

4. The board shall contain only the brand name or picture of the tobacco products and no other promotional message and picture

Prohibition of sale to minors

The owner or the manager or the Incharge of the hotel or restaurants where cigarettes and other tobacco products are sold shall display a
board of minimum size of 60cm by 30cm at noticeable place(s) containing the warning “Sales of tobacco products to a person under the age
of eighteen years is a punishable offence”, in Indian language(s) applicable.

Q2 = Explain in brief “Credit Card law in India”?

Meaning of Credit Card- credit card is a payment card issued to users as a system of payment. It allows the cardholder to pay for
goods and services based on the holder's promise to pay for them. The issuer of the card creates a revolving account and grants a line of
credit to the consumer (or the user) from which the user can borrow money for payment to a merchant or as a cash advance to the user.
 Credit Card law in India

1. Hotel should check the credit limits from the guest.

2. Date of Expiry.
3. Card should be from banks approved by RBI.
4. Card number should not appear in the hot bulletin of the bank.
5. Amount payable should not cross the credit limit of the hotel or bank.
6. The signature of the card holder must tally with credit card signature.
7. If the credit limit crosses then authorization should be taken from the bank.
8. Authorization number should be mentioned on the credit card charge slip with date.
9. The name of the hotel and account number in bank of hotel must be clear.

Q3 = Explain in brief “Restriction on playing music in the public area or guest room”?

Restriction on playing music in the public area or guest room

 The permission for playing loud music in public area or in rooms of the hotel which disturbs the guest is not allowed.
 A loud speaker or a public address system shall not be used except after obtaining written permission from the authority.
 Music should be within 124 decibel. (The decibel begins by being a relative measure comparing two powers.)
.
 Special permission is to be taken under law for playing music in loud speakers in residential area post 10 p.m.

NOISE POLLUTION- Environment (Protection) Act, 1986

Definitions-

(a) “Act” means the Environment (Protection) Act, 1986

(b) “Area / zone” means all areas which fall in any of the four categories given in the Schedule annexed to these rules;

(c) “authority” means and includes any authority or officer authorized by the Central Government, or as the case may be,
the State Government in accordance with the laws in force and includes a District Magistrate, Police Commissioner, or
any other officer not below the rank of the Deputy Superintendent of Police designated for the maintenance of the
ambient air quality standards in respect of noise under any law for the time being in force;

(d) “court” means a governmental body consisting of one or more judges who sit to adjudicate disputes and administer
justice and includes any court of law presided over by a judge, judges or a magistrate and acting as a tribunal in civil,
taxation and criminal cases;

(e) “educational institution” means a school, seminary, college, university, professional academies, training institutes or
other educational establishment, not necessarily a chartered institution and includes not only buildings, but also all
grounds necessary for the accomplishment of the full scope of educational instruction, including those things essential
to mental, moral and physical development;

(f) “hospital” means an institution for the reception and care of sick, wounded, infirm or aged persons, and includes
government or private hospitals, nursing homes and clinics;

(g) “person” shall include any company or association or body of individuals, whether incorporated or not;

(h) “State Government” in relation to a Union territory means the Administrator thereof appointed under article 239 of
the Constitution.

(i) “public place” means any place to which the public have access, whether as of right or not, and includes auditorium,
hotels, public waiting rooms, convention centre’s, public offices, shopping malls, cinema halls, educational institutions,
libraries, open grounds and the like which are visited by general public; and

(j) “Night time” means the period between 10.00 p.m. and 6.00 a.m.
 Consequences of any violation in silence zone/area:-

Whoever, in any place covered under the silence zone/area commits any of the following offence, he shall be liable for penalty
under the provision of the Act:-

1. whoever, plays any music or uses any sound amplifiers ,

2. whoever, beats a drum or tom-tom or blows a horn either musical or pressure, or trumpet or beats or sounds any
instrument, or
3. Whoever, exhibits any mimetic, musical or other performances of a nature to attract crowds?

Q4 = Explain in brief “Catering Contract”?

Meaning of Catering Contract:

A catering contract is an agreement between a customer and a caterer to provide catering services such as to supply food for a
specified period or a particular event according to the terms and conditions set out in the agreement. A well-written catering
contract will specify on all expectations of food service, procedures, fees, liability concerns and dates of delivery for catering
business. It must give a clear understanding of obligations, timelines and payment expectations for both parties entering the
agreement.

Guest Count:
An initial guest count will be given at time of booking. A final guest count is required prior to the date of the event. Any pricing
consideration given based on your initial guest count may be adjusted at the judgment of hotel; restaurant and catering
companies. Catering should the increase/decrease of the final guest demand.

Date &Reservation Fee/Deposit:

There is a date & reservation fee of the total anticipated contract price. A deposit of 1/3 of your estimated proposal is due at
time of booking. The date of your event is secured when this fee has been paid and should not be considered to be booked
until that time. This fee is based on the final guest count provided by you at the time of event booking. This fee will be
deducted from the final bill.

Cancellation By Client
All prepayments and deposits are returned in full (less $ 200.00) if your event is cancelled by you, 180 days or more, from your
event date.
If the event is cancelled, between 90 days and 179 days from your event date, all prepayments and deposits are returned to
you in full (less 50% of your deposit amount up to but no more than $1,000.00).
If the event is cancelled, within 89 days of your event date, all deposits and prepayments are forfeited in full.
If PC (Pyramid Catering) is able to re-book your date with a similar event, all prepayments and deposits are returned in full
(less $ 200.00)

Cancellation By Pyramid Catering (PC)

PC reserves the right to terminate this contract for any reason.
IF PC terminates this contract over 30 days prior to your event date, all deposits and prepayments will be returned in full within
10 days.

IF PC terminates this contract within 30 days prior to your event date, all deposits and prepayments will be returned in full
within 10 days as well as an additional $500.00 penalty.

Final Bill Presentation and Payment:

Final bill less reservation fee will be presented to you after your final guest count has been received. This bill is considered final
unless changes in service expectations, menu or guest count occurs after that presentation. Any changes agreed upon by hotel;
restaurant and catering companies and it’s customer after the final bill has been presented will be added and a new final
invoice will be presented.