India's Consumer Protection Authority penalises 41 restaurants over illegal service charges

The Central Consumer Protection Authority (CCPA) has launched suo motu action against 41 restaurants across India for automatically adding service charges to bills without consumer consent, violating the Guidelines to Prevent Unfair Trade Practices. The Delhi High Court upheld these guidelines, stating that mandatory service charges are contrary to law.

Among the penalised outlets, Chaayos (Sunshine Teahouse Pvt. Ltd.) received a Rs 50,000 fine, an order to reimburse collected charges and a directive to modify its billing software to prevent automatic levy. Other establishments named include Barbeque Nation, China Gate, L'Opera, Cafe Blue Bottle, FOO Ahmedabad, and Zorro Night Club. Further proceedings are ongoing for additional restaurants.

The CCPA emphasised that service charges must be voluntary, optional, and disclosed to consumers, and urged the public to report any default levies through the National Consumer Helpline.