Archive · 20 Jul 2026
CCPA fines 41 restaurants for default service charges
The Central Consumer Protection Authority (CCPA) has taken action against 41 restaurants in India for automatically adding service charges to customer bills.
This is against the rules because service charges should be voluntary.
The CCPA has fined these restaurants and told them to stop adding service charges automatically.
They also have to change their billing systems.
The CCPA has asked people to report any restaurants that still add service charges automatically.
The Delhi High Court has supported the CCPA's rules, saying that restaurants cannot force customers to pay service charges.
CCPA initiated action against 41 restaurants for default service charges.
Service charges are voluntary and cannot be added automatically.
Chaayos fined ₹50,000 and ordered to refund affected customers.
Restaurants must modify billing systems to remove automatic service charges.
Delhi High Court upheld CCPA guidelines, confirming no legal basis for mandatory service charges.
- Who
- Central Consumer Protection Authority (CCPA) and 41 restaurants across India
- What
- CCPA initiated action against restaurants for levying service charges by default
- When
- Action initiated on July 19, 2026
- Where
- Restaurants across India
- Why
- To protect consumer rights and prevent unfair trade practices
Restaurants
CCPA
Service Charge Imposition
Restaurants
Some restaurants argue that service charges help cover operational costs and staff wages, especially in a competitive market.
CCPA
CCPA maintains that service charges are voluntary and their automatic imposition is an unfair trade practice violating consumer rights.
- Action Initiated By
- Central Consumer Protection Authority (CCPA)
- Number of Restaurants Penalized
- 41
- Penalty on Chaayos
- ₹50,000
- Guidelines Issued
- July 2022
- Complaint Lodging Platform
- National Consumer Helpline (NCH) - 1915
- Delhi High Court Ruling
- March 2025
