The Central Consumer Protection Authority (CCPA) has issued notices to five Delhi-based restaurants for continuing to levy mandatory service charges on customers, despite a Delhi High Court order upholding guidelines that prohibit the practice. The CCPA took suo motu action against Makhna Deli, Xero Courtyard, Castle Barbeque, Chaayos, and Fiesta by Barbeque Nation after receiving complaints via the National Consumer Helpline, the Ministry of Consumer Affairs said in a statement on Tuesday. The restaurants have been directed to refund the service charges collected in violation of consumer rights, under the provisions of the Consumer Protection Act, 2019.
As per the CCPA guidelines dated July 4, 2022—recently upheld by the Delhi High Court on March 28, 2025—restaurants are barred from adding service charges automatically to food bills or collecting them under any other name. The guidelines clearly specify that such charges must be entirely voluntary and left to the consumer’s discretion. “No hotel or restaurant shall force a consumer to pay a service charge,” the rules state. Businesses are also required to clearly inform customers that paying a service charge is optional.
Set up under Section 10 of the Consumer Protection Act, 2019, the CCPA is tasked with protecting consumer rights and addressing unfair trade practices. Consumers can report violations through the National Consumer Helpline by dialling 1915.
(With PTI inputs)
