CCPA Takes Action Against Restaurants for Unlawful Service Charges

The Central Consumer Protection Authority has targeted five eateries for not complying with court orders to refund service charges. The initiative aims to shield consumers from undue fees. Despite guidelines, some establishments persist in imposing mandatory charges, prompting CCPA intervention under the Consumer Protection Act, 2019.

The Central Consumer Protection Authority (CCPA) has initiated suo moto action against five restaurants, including Makhna Deli and Xero Courtyard, for failing to refund mandatory service charges, defying a High Court judgment.

The Ministry of Consumer Affairs emphasized that consumers should not be coerced into paying any extra charges, aligning with CCPA guidelines issued to curb unfair practices in the hospitality sector.

Despite the Delhi High Court's affirmation of these guidelines on March 28, violations persist, prompting enforcement by the CCPA, highlighting its commitment to upholding consumer rights under the Consumer Protection Act, 2019.