Restaurants in Colombia cannot automatically add a tip to a bill without the customer’s explicit consent, and doing so exposes them to fines of up to $3.5 billion—the maximum penalty under consumer protection laws. The Law 1935 of 2018 and the Consumer Statute (Law 1480 of 2011) make it clear: tips are voluntary, and any charge without prior agreement violates the customer’s right to decide how much to pay, or whether to pay at all.
The law limits suggested tips to 10% of the bill, but even that must be confirmed by the customer before the receipt is issued. Abel Cupajita Rueda, a tax and legal partner at Sescol Abogados, warns that restaurants cannot assume a tip is accepted. If a customer later realizes a tip was added without their permission, they can demand a refund, provided they keep the receipt and payment proof.
Customers do not need to justify rejecting a tip, even if they received poor service. The decision is entirely discretionary. If a restaurant refuses to adjust the bill, the customer can escalate the complaint to the Superintendence of Industry and Commerce (SIC), which oversees enforcement of consumer rights.
The consequences for restaurants are severe. Under Article 7 of Law 1935 and Article 61 of Law 1480, the SIC can impose fines up to 2,000 minimum wages, currently $3.5 billion, for unauthorized tip charges. However, the penalty depends on factors like the severity of the violation, repeat offenses, and financial gain. Individual managers or legal representatives found responsible could face fines of up to 300 minimum wages, or $525 million, if they authorized or executed the illegal practice.
Read Also: Consumers Seek Refunds for Duplicate Charges
Investigations are not automatic. The SIC must first determine whether the restaurant violated the law through a formal process, including evidence of the unauthorized charge and the customer’s refusal to pay it. The burden of proof rests on the customer to demonstrate the tip was added without consent.
Tips collected must also be used exclusively for service staff, not retained by the restaurant as profit. Camilo Suárez, a partner at PPU specializing in intellectual property, notes that misusing tip funds, such as keeping them for operational costs, could trigger additional legal action.
Customers who discover an unauthorized tip on their bill should act quickly. The SIC advises keeping all receipts and payment records to support a claim. If the restaurant still refuses to refund the amount, the customer can file a formal complaint with the SIC, which may lead to an audit or penalty against the business.
Leave a Reply