Fomca urges owners to get CA endorsed

KELANA JAYA: The Federation of Malaysian Consumers Association (Fomca) has urged hotel and restaurant owners to get their collective agreements (CA) endorsed by the Domestic Trade, Cooperatives and Consumerism Ministry (KPDNKK) to include the service charge in their bills.

Fomca deputy president Mohd Yusof Abdul Rahman said that this is to prove the authenticity of the collective agreement (CA) between the employers and employees.

KPDNKK had earlier requested that owners display their CA to avoid confusion among consumers on whether or not their premise will be including the service charge.

The CA is an agreement between the owners and their employees that the said premise will be charging for their services.

“We are suggesting that these hotel and restaurant owners bring their CA to KPDNKK to get an endorsement notice from them,” Yusof told reporters during a press conference after a check by Fomca on some shops in relation to the Goods and Services Tax (GST) in Paradigm Mall today.

“This endorsed notice, provided by the ministry, should then be displayed on their premise to prove that the CA is authentic.

“Only then can they apply the service charge to the invoices for their consumers, without getting any complains,” he explained.

Yusof added that owners who do not have the CA endorsed by KPDNKK should therefore not charge their customers for their services.

He also said that the association has received many complaints from disgruntled consumers on the issue of the service charge.

“People are questioning why there should be a service charge, especially when it is also subjected to the GST,” he said.

Yusof said this would be the best solution presently, until the government comes up with a new policy concerning the situation.