Consumer watchdog issues guidance for restaurants, cafes, hair salons and other service providers as new technologies change the landscape of tipping
New tipping research from the Competition and Consumer Protection Commission (CCPC) has revealed that:
- 9 in 10 consumers tip at least some of the time
- Women and over 35s are more likely to tip
- 2 in 3 believe tipping is becoming less voluntary
- 3 in 4 would like to see businesses make it easier to opt out of tipping
- 1 in 5 have recently paid a bill that included an unexpected extra charge
- 1 in 4 consumers who have encountered standalone tipping terminals have tapped them by mistake
New guidance
The CCPC has issued new guidance based on the research to help restaurant owners and other traders decide how best to collect tips with new technologies.
Published on the CCPC website and sent to industry bodies, the guidance states:
- Tipping on a payment terminal should be easy to avoid
- Prevent accidental tipping by keeping tipping terminals separate and clearly labelled
- Mandatory service charges must be very clearly communicated in advance
- Optional service charges must never be automatically added to a bill
Simon Barry, Director of Research, Advocacy and International at the CCPC said,
“Newer technologies like payment screens and tipping terminals are changing the way we tip for services. It’s important that businesses using these technologies do so in a way that protects the consumer’s right to decide whether and how much to tip.
“Transparency is vital. Any mandatory service charges must be flagged well in advance, optional charges must never be automatically added to bills, and tipping terminals should be placed away from payment terminals to avoid any confusion.”
The Competition and Consumer Protection Commission (CCPC) is the statutory body responsible for enforcing and promoting compliance with competition, consumer protection and product safety law, with new and expanding roles in digital and data regulation. We make markets work better for consumers and empower consumers to make informed choices. For more information, visit ccpc.ie