CCPA Takes Action Against Restaurants for Mandatory Service Charges

The Central Consumer Protection Authority (CCPA) has issued notices to five restaurants for imposing mandatory service charges, violating guidelines that state such charges must be voluntary. The CCPA demands refunds and highlights consumer rights provisions under the Consumer Protection Act, 2019.

The Central Consumer Protection Authority (CCPA) has cracked down on a group of restaurants found continuing to impose mandatory service charges on customers, contrary to existing guidelines. The CCPA's action followed complaints received through the National Consumer Helpline about the ongoing practice.

The affected establishments include Makhna Deli, Xero Courtyard, Castle Barbeque, Chaayos, and Fiesta by Barbeque Nation. These restaurants have been directed to refund the unauthorized charges under the stipulations of the Consumer Protection Act, 2019, according to an official CCPA statement.

This decisive move comes after the Delhi High Court reaffirmed on March 28, 2025, guidelines released on July 4, 2022, that prohibit automatic imposition of service charges. These guidelines highlight that service charges should be at the consumer's discretion and should not be forced upon customers.

(With inputs from agencies.)