CCPA pulls up 5 restaurants for charging service fee despite court ruling

Consumer watchdog CCPA has issued notices to five restaurants for continuing to impose mandatory service charges despite a recent Delhi High Court ruling upholding guidelines against the practice.

The Central Consumer Protection Authority (CCPA) took suo moto action against Makhna Deli, Xero Courtyard, Castle Barbeque, Chaayos, and Fiesta by Barbeque Nation after receiving complaints through the National Consumer Helpline. 

The notices demand refunds of collected service charges under provisions of the Consumer Protection Act, 2019, an official statement said.

According to guidelines issued by the CCPA on July 4, 2022, and upheld by the Delhi High Court on March 28, 2025, restaurants cannot add service charges automatically to food bills or collect them under any other name. The guidelines clearly state that service charges must be voluntary and at the consumer's discretion. 

"No hotel or restaurant shall force a consumer to pay a service charge," the guidelines emphasise, adding that establishments must clearly inform customers about the optional nature of such charges.

The CCPA, established under Section 10 of the Consumer Protection Act, 2019, is tasked with regulating matters related to consumer rights violations and unfair trade practices.

Consumers can register complaints through the National Consumer Helpline at 1915.