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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.
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PNI broke the news on Sunday, July 19, 2026.
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