I can see this argument, although I don't agree. It's only marginally acceptable if it's either 1. VERY up front, or 2. Doesn't exist and is incorporated directly into the price.
The biggest issue is it is mandatory and its impersonal. If it's mandatory and impersonal, it's /not/ a tip, and it shouldn't be percentage based. If the business wants to raise prices, raise prices. Tacking on additional costs that are not correctly and appropriately represented in the price is basically fraud, and it's doubly uncouth because my understanding is that most businesses don't give this service charge to the workers, it's just treated as revenue.
The biggest issue is it is mandatory and its impersonal. If it's mandatory and impersonal, it's /not/ a tip, and it shouldn't be percentage based. If the business wants to raise prices, raise prices. Tacking on additional costs that are not correctly and appropriately represented in the price is basically fraud, and it's doubly uncouth because my understanding is that most businesses don't give this service charge to the workers, it's just treated as revenue.