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Your rights

Can companies charge hidden fees?

Short answer

No. All charges must be disclosed upfront. Hidden charges are an unfair trade practice. You can file a consumer complaint for refund of hidden charges plus compensation.

Understanding the issue

Under the Consumer Protection Act, charging hidden fees constitutes an unfair trade practice under Section 2(47). All companies, service providers, and e-commerce platforms are required to disclose the total price including all charges, taxes, and fees upfront before the consumer makes a purchase. Hidden charges in telecom bills, bank statements, insurance policies, or online purchases can be challenged. If you discover hidden charges: demand a detailed breakdown from the company, request reversal of unauthorized charges, file complaint with the company's grievance officer, and if unresolved, file a consumer complaint. You can claim refund of the hidden charges plus compensation for unfair trade practice.

Laws that apply

  • Consumer Protection Act — Section 2(47) (Unfair trade practice)
  • Consumer Protection (Unfair Trade Practices) Rules