According to the government, service charge is completely voluntary. If a customer refuses to pay it, it cannot be collected.
The Central Consumer Protection Authority (CCPA) has taken strict action against restaurants in Delhi that were forcing customers to pay service charges.
The CCPA has sent notices to five restaurants and ordered them to refund the collected service charges.
As reported by CNBC-Awaaz’s Aseem Manchanda, the CCPA is cracking down on such practices.
What Did the CCPA Do?
The CCPA found that these restaurants were charging service fees from customers even when they refused to pay.
Based on complaints made on the National Consumer Helpline (1915), CCPA investigated and found that customers were denied refunds, even though they did not agree to pay the charge.
The authority then issued notices and directed refunds to the affected customers.
What Does the Law Say?
The government has clearly stated that paying a service charge is optional, not mandatory.
No restaurant or hotel can force a customer to pay it. If a customer says no, the charge must be removed from the bill.
On March 28, 2025, the Delhi High Court supported CCPA’s guidelines and ruled that no restaurant can force customers to pay service charges.
However, the Restaurant Association has challenged this decision in the Division Bench of the High Court, and the hearing could take place today.
Which Restaurants Are Involved?
The five Delhi restaurants named in the CCPA action are:
Makhana Deli
Zero Courtyard
Castle Barbecue
Chaayos
Fiesta by Barbecue Nation
These restaurants have been ordered to return the service charges collected from customers against their will.
Why Is CCPA Taking This Action?
This step is aimed at stopping restaurants from pressuring customers into paying extra charges that are not legally required.
Several complaints on the consumer helpline reported that even after the court’s decision, some restaurants were still forcing customers to pay the service charge.
Based on these complaints, the CCPA has taken this strong action to protect consumer rights.
