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February 15, 2014

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Corkage fees a thing of the past as top court declares it invalid

Like a drink with your dinner but find the corkages hard to swallow?

That may all change now, and diners have the Supreme People’s Court to thank for.

The highest court of the country has ruled that diners who are asked to pay corkage fees or minimum charge for a meal in a VIP room, or are forbidden from bringing drinks to restaurants, can approach local courts to protect their rights.

But some Shanghai restaurants are reluctant to implement the ruling, at least for now.

On January 9, the court issued a judicial explanation, stating the rules set by the food and drug manufacturers or distributors that cancel or limit a consumer’s rights should be considered invalid.

However, the catering industry argued it did not feel obliged to act on the ruling as it fell under a different category. The court then cited two other laws that protect diners from unfair rules.

Under the contract law, contract terms which preclude the other side’s rights should be deemed invalid.

And under the protection of the consumers’ rights and interests law, notification from proprietors which preclude or limit a consumer’s rights is also invalid.

The court said restaurants that insist “don’t bring your own drinks” or “a minimum charge is set for a VIP room” are typical unfair ones.

Some of the restaurants that Shanghai Daily checked yesterday admitted having such rules.

An outlet of South Beauty, a restaurant chain that specializes in Sichuan cuisine, said it has no minimum charges for a VIP room but diners are not allowed to bring their own drinks.

Some restaurants require a minimum charge for a VIP room when the diners reach a certain number.

“We have a minimum charge if a room is booked for 13 or more people,” said a staff member at an outlet of the Tang Dynasty, a well-known restaurant chain in the city. “Depending on the number of people, we charge between 350 and 700 yuan per person.”

She also said they charge “service fee” from diners who carry their own drinks to the restaurants.

A branch of Dynasty, another restaurant chain, said they have a minimum charge of 1,000 yuan for 10 people and 1,200 yuan for 12 people.

Corkages vary from 30 yuan to 500 yuan, in proportion to the prices of the drinks.

“The ‘service fee’ for a bottle of Moutai or Wuliangye brought to our restaurant is 200 yuan,” a restaurant staff said. “We charge 50 yuan for wine.”

Understandably, the court ruling has been welcomed by diners but some netizens fear that it won’t be easy to implement.

“China doesn’t lack laws. What it lacks is execution of the laws,” said an online post.

Another netizen said the restaurants are more likely to raise their prices after the court’s statement.

A young woman, surnamed Chen, told Shanghai Daily yesterday her parents sometimes encountered these unfair “service fee.”

“But it is troublesome to seek legal help as the fee is usually not very high,” Chen said.

Another woman, surnamed Wang, who was with her boyfriend, welcomed the court’s ruling saying they would carry cheaper wines to the restaurant for their wedding party.




 

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