CCPA takes suo motu action against five restaurants over service charge issue

Complaints received via the National Consumer Helpline indicated that many restaurants continued to violate consumer rights and engage in unfair practices contrary to the Consumer Protection Act, 2019.

The Central Consumer Protection Authority (CCPA) has taken suo moto action against five restaurants, including Makhna Deli, Xero Courtyard, Castle Barbeque, Chaayos, and Fiesta by Barbeque Nation, for failing to refund mandatory service charges. This was  despite the recent judgment by the Delhi High Court which upheld CCPA’s guidelines that state that service charges cannot be added to food bills by default and are  optional. 

“Notices have been issued under the Consumer Protection Act, 2019, directing the restaurants to refund the service charge amounts,” it said in a statement on Monday. 

“This measure is aimed at reducing the undue pressure on Consumers to pay additional amount at the time of availing services at any Restaurant as no Hotel or Restaurant shall force a consumer to pay Service Charge or Service Charge shall not be collected from consumers by any other name,” it added. 

The CCPA said it received complaints on the National Consumer Helpline (1915), alleging that certain restaurants continued to impose a mandatory service charge without obtaining consent from consumers, thereby disregarding consumer rights and indulging in unfair trade practices as per the Consumer Protection Act, 2019. Post which it has issued these notices. 

Published on April 29, 2025