Question to the Department for Business, Innovation, Science and Trade:

To ask the Secretary of State for Business and Trade, whether he plans to introduce legislation to prohibit the automatic addition of service charges to customer bills.

The Digital Markets, Competition and Consumers (DMCCA) Act 2024 requires traders to display prices inclusive of all taxes and unavoidable charges before payment is made. Prices must be accurate and not misleading. Failure to do this may be taken as an unfair trading practice and constitute an offence.

It should always be clear on the bill, or in communication with staff, whether any tip automatically added to the bill is optional or mandatory for the consumer to pay. If it is an optional payment, there should be no pressure to agree it.

Customers can be assured that all tips, gratuities and service charges must be passed on the workers who have earned them, rather than being retained by employers.

The department does not have any plans to introduce further legislation on this matter.