1 month ago
CCPA Acts Against 41 Restaurants for Unauthorized Service Charges
The Central Consumer Protection Authority (CCPA) is taking action against 41 restaurants in India for adding service charges to bills without asking customers first.
This is not allowed because customers should choose if they want to pay a service charge.
The CCPA has fined one restaurant, Chaayos, and told all the restaurants to stop adding service charges automatically.
They also have to change their billing systems so that service charges are not added by default.
The CCPA is doing this to make sure restaurants follow the rules and treat customers fairly.
If you see a restaurant adding service charges without asking, you can complain by calling 1915 or using the online platform.
CCPA has initiated action against 41 restaurants for adding service charges without customer consent.
Chaayos was fined ₹50,000 and ordered to refund affected customers and modify its billing system.
Other restaurants involved include Cafe Blue Bottle, China Gate Restaurant, Barbeque Nation, FOO Ahmedabad Restaurant, L'Opera French Bakery, and Zorro – The Luxury Night Club.
The action is based on 2022 guidelines and consumer complaints received through the National Consumer Helpline.
Restaurants are prohibited from adding service charges by default, pressuring customers, denying service, clubbing charges, or levying GST on service charges.
- Who
- Central Consumer Protection Authority (CCPA) and 41 restaurants including Chaayos, Cafe Blue Bottle, China Gate Restaurant, Barbeque Nation, FOO Ahmedabad Restaurant, L'Opera French Bakery, and Zorro – The Luxury Night Club
- What
- CCPA has initiated action against restaurants for adding service charges without customer consent, violating consumer rights and unfair trade practices
- Where
- Restaurants across India
- When
- Action based on 2022 guidelines and recent consumer complaints
- Why
- To enforce guidelines that service charges are voluntary and to protect consumer rights
Key facts
- Action Initiated By
- Central Consumer Protection Authority (CCPA)
- Number of Restaurants
- 41
- Penalty Imposed on Chaayos
- ₹50,000
- Guidelines Issued
- July 2022
- Consumer Helpline Number
- 1915
- Legal Basis
- Consumer Protection Act, 2019
- Court Ruling
- Delhi High Court, March 2023
- Key Violations
- Adding service charge by default, pressuring customers, denying service, clubbing charges, levying GST on service charge
Quotes
Pralhad Joshi
Consumer Affairs Minister
“Reaffirming that service charge is voluntary and entirely at the consumer's discretion, the CCPA has imposed penalties on violators.”
telegraphindia.com
Sources
Chaayos, Barbeque Nation among 41 restaurants facing CCPA action for adding service charge without consent
Consumer protection authority cracks down on service charge, acts against 41 restaurants - Telegraph India
CCPA cracks down on 41 restaurants for levying service charges without consumers' consent
