India Consumer Watchdog Fines 41 Restaurants for Service Charge

Other restaurants that received final orders include Cafe Blue Bottle in Patna, China Gate Restaurant Pvt Ltd, Fiesta Barbeque Nation (Barbeque Nation Hospitality Pvt Ltd), FOO Ahmedabad Restaurant (Pebble Street Hospitality Pvt Ltd), L'Opera French Bakery Pvt Ltd, and Zorro - The Luxury Night Club (Rudra Hospitality Pvt Ltd). The CCPA said further proceedings are underway against other restaurants.

The guidelines, notified in July 2022, prohibit restaurants from adding a service charge by default or disguising it under another name. They also cannot pressure customers into paying it or deny service to those who decline. The rules bar clubbing the charge with the food bill or applying GST on it. The Delhi High Court upheld these guidelines in March last year, ruling that mandatory service charges have no legal basis.

The CCPA urged diners who encounter such charges to file complaints via the toll-free number 1915 or its online platform. The authority said it will continue monitoring the sector for violations, meaning restaurants that continue the automatic charge could face additional penalties.