Our Bureau
New Delhi
The Central Consumer Protection Authority (CCPA) has initiated suo motu action against 41 restaurants across the country for allegedly levying service charges by default without obtaining consumers’ explicit consent, reinforcing its stand that such charges cannot be imposed automatically on diners. The move comes amid growing complaints that customers are being presented with mandatory service charges on restaurant bills despite existing consumer protection guidelines.
According to the CCPA, restaurants cannot add a service charge to bills as a compulsory fee or under any other name without first informing customers and obtaining their consent. The authority has issued notices to the establishments, seeking explanations for practices that may amount to unfair trade practices under the Consumer Protection Act. The action follows a review of consumer grievances and evidence indicating that several restaurants continued to levy service charges despite clear regulatory guidance.
The regulator reiterated that consumers have the right to request the removal of a service charge if they do not wish to pay it. Restaurants are also prohibited from denying entry, delaying service, or discriminating against customers who refuse to pay such charges. The authority emphasized that service charges are voluntary and should not be presented as mandatory or automatically included in the final bill.
The latest crackdown builds on the CCPA’s 2022 guidelines, which directed restaurants not to collect service charges by default. The guidelines also advised consumers to lodge complaints through the National Consumer Helpline or the e-Daakhil portal if restaurants fail to comply. Consumer rights advocates have welcomed the renewed enforcement, saying it strengthens transparency and protects customers from hidden or misleading billing practices.
The CCPA’s action signals a stricter regulatory approach toward ensuring fair business practices in the hospitality sector and serves as a reminder that service charges remain voluntary unless customers choose to pay them.
