India
oi-Madhuri Adnal
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 a series of complaints received through the National Consumer Helpline (NCH), where customers submitted invoices showing service charges had been added automatically to their bills. According to the CCPA, diners were often left with little room to question or refuse the extra charge.
The Central Consumer Protection Authority (CCPA) acted against 41 Indian restaurants for adding service charges without customer consent, confirming the practice violates consumer rights and cannot be automatically included in bills, a position supported by a March 2025 Delhi High Court ruling.
After examining the complaints, the consumer watchdog found that several restaurants had continued to levy service charges in a manner that went against the rules laid down by the authority. It maintained that customers must have the freedom to decide whether they want to pay a service charge and cannot be forced into doing so.
The action comes months after the Delhi High Court backed the CCPA’s stand on service charges. In its March 28, 2025 ruling on a plea filed by the National Restaurant Association of India (NRAI), the court upheld the CCPA’s service charge guidelines and affirmed the regulator’s authority to enforce them. The judgment made it clear that restaurants cannot treat service charges as a mandatory component of the bill.
Under the guidelines issued in July 2022, hotels and restaurants are not permitted to automatically add service charges to food bills or recover them under any other name. Customers must be informed that paying a service charge is entirely voluntary. Businesses are also barred from denying service or discriminating against diners who choose not to pay.
The rules further state that service charges should not form part of the bill and that GST cannot be levied on such amounts.
One of the cases examined by the CCPA involved popular tea café chain Chaayos. The company was fined ₹50,000 for levying a service charge by default and has been directed to refund the amount collected from the complainant.
The authority has also asked Chaayos to modify its billing software across outlets to ensure that service charges or similar fees are not automatically added to customer bills in the future.
Apart from Chaayos, orders have been passed against several establishments, including Cafe Blue Bottle in Patna, China Gate Restaurant Pvt. Ltd., Fiesta Barbeque Nation, FOO Ahmedabad Restaurant, L’Opera French Bakery and Zorro – The Luxury Night Club.
The CCPA said it is continuing to examine similar complaints against other restaurants and warned that action will follow wherever violations are found. Consumers who encounter service charges being added without their approval can lodge complaints through the National Consumer Helpline by calling 1915 or using the NCH platform.
