The Central Consumer Protection Authority (CCPA) has taken Suo Moto Action against the five restaurants – Makhna Daily, Zero Courtyard, Castle Barbecue, Chaios, and Fiesta – by Barbecue Nation – the Honabel High Court of Delhi, Food and Public Distribution, despite the decision organized by the Honorable High Court, to fail to return the compulsory service fee. Notices have been issued under the Consumer Protection Act, 2019, which direct the restaurant to return the service charge amount.
This measure is aimed at reducing improper pressure on consumers to pay additional amount at the time of availing services in any restaurant. According to the Ministry of Consumer Affairs, food and public distribution, no hotel or restaurant will force the consumer to pay the service fee, and no other name will be collected from consumers.
Also read: Zepto user bills confused with bill calculation, redditors provide mathematics lessons
The Central Consumer Protection Authority (CCPA) issued guidelines on July 4, 2022 to curb unfair trade practices and protect consumer interests. On March 28, 2025, the Delhi High Court upheld the CCPA guidelines on service charges. Subsequently, it came to the notice of the CCPA that complaints were registered at the National Consumer Helpline (1915), alleging that some restaurants continue to levy a compulsory service fee without obtaining prior consent from consumers, including involved in unfair trade practices as Consumer Protection Act, 2019.
CCPA Guidelines on Service Fee at Hotel and Restaurant:
- No hotel or restaurant will add a service fee to the food bill automatically or by default.
- No collection of service fees will be done by any other name.
- No hotel or restaurant will force a consumer to pay the service fee and clearly inform the consumer that the service fee is voluntary, optional and consumer’s discretion.
- The entry or provision of services based on the collection of service fees will be imposed on consumers.
- The service fee will not be collected by taking GST on the food bill along with the food bill.
Also read:CA creates a wide sheet to divide the food bill between friends, internet reacts
The primary mandate of CCPA is to regulate matters related to consumer rights, unfair trade practices and violations of false or misleading advertisements.
