Union Minister Pralhad Joshi Warns Restaurants Against Service Charge, Says Violators Will Face Fines
- The Central Consumer Protection Authority has taken suo motu action against 41 restaurants in India for automatically adding service charges to customer bills without explicit consent, violating consumer protection guidelines and unfair trade practice laws.
- Union Minister Pralhad Joshi stated that service charges are voluntary and at the consumer's discretion, and the CCPA has fined violators and directed them to stop automatic levies of service charges.
- The Delhi High Court upheld in March 2025 that mandatory collection of service charges is illegal, reinforcing guidelines preventing unfair trade practices by restaurants.
- The CCPA fined Chaayos ₹50,000 and ordered reimbursements to affected customers, also requiring changes in its billing software to prevent automatic service charge addition, with further actions ongoing.
19 Articles
19 Articles
Chaayos, Barbeque Nation Among 41 Restaurants Face CCPA Action For Adding Service Charges To Bills
The Central Consumer Protection Authority (CCPA) has cracked down on 41 restaurants across India for allegedly adding service charges to customers' bills without their consent, saying the practice violates consumer rights and amounts to an unfair trade practice. The action follows
Union Minister Pralhad Joshi warns restaurants against service charge, says violators will face fines
Union Minister Pralhad Joshi warned restaurants against levying mandatory service charges. Establishments continuing this practice face stringent action and reputational damage. The Central Consumer Protection Authority has initiated action against forty-one restaurants nationwide. The Delhi High Court upheld guidelines prohibiting automatic service charges on bills. Consumers are urged to report such unfair trade practices to the ministry.
Consumer Protection Authority Initiates Suo Motu Action Against 41 Restaurants for Levying Service Charge by Default
Get latest articles and stories on Business at LatestLY. The Central Consumer Protection Authority (CCPA) has initiated suo motu action against 41 restaurants across the country for allegedly levying service charge by default on consumers' bills, following complaints received through the National Consumer Helpline (NCH), according to a Ministry of Consumer Affairs, Food and Public Distribution release issued on Sunday. Business News | Consumer P…
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