Posted on June 24, 2016

The Ministry of Economy and Trade said Friday that, in line with law no. 6 of 2016, it will ban restaurants, coffee shops and hotels from using a minimum charge.

The ministry said that the charge forces people to have a minimum consumption level that could exceed their needs. This in turn, violates article 10 of law no. 8 of 2008 on consumer protection. The ministry gave coffee shops, restaurants and hotels 30 days to carry out the changes necessary to end minimum charge or any other method that controls consumption levels. Such measures include revising prices on the menus, ads, bills as well as removing any sign that states a minimum charge. the decision is part of many initiatives the ministry is implementing to regulate the market and control prices.

In addition to incurring financial loss to consumers, the ministry said that minimum charges promote bad habits, particularly overspending. That quality is in contrast to Islam which calls for rationalizing consumption. Another bad habit the ministry said was over consumption of food and drinks that consumers are forced to take to meet the charge, which could result in health hazards.

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