CCPA takes suo moto cognizance against 5 Delhi restaurants for non-refund of service charge

New Delhi [India], April 29 (ANI): The Central Consumer Protection Authority (CCPA) has taken suo moto action against five restaurants Makhna Deli, Xero Courtyard, Castle Barbeque, Chaayos, and Fiesta by Barbeque Nation for failing to refund mandatory service charges despite judgment held by Hon'ble High Court of Delhi, the Ministry of Consumer Affairs, Food & Public Distribution said.
The notices have been issued under the Consumer Protection Act, 2019, directing the restaurants to refund the service charge amounts.
The Ministry of Consumer Affairs, Food and Public Distribution said that this measure is aimed at reducing the undue pressure on Consumers to pay additional amount at the time of availing services at any Restaurant as no Hotel or Restaurant shall force a consumer to pay Service Charge or Service Charge shall not be collected from consumers by any other name.
The Central Consumer Protection Authority (CCPA) issued guidelines on July 4, 2022, to curb unfair trade practices and protect consumer interests regarding service charges in hotels and restaurants.

Earlier on March 28, 2025, the Delhi High Court upheld the CCPA guidelines on service charges. Subsequently, it came to the notice of the Central Consumer Protection Authority (CCPA), through complaints received on the National Consumer Helpline (1915), that grievances had been registered alleging that certain restaurants continued to impose a mandatory service charge without obtaining prior consent from consumers, thereby disregarding consumer rights and indulged in unfair trade practices as per the Consumer Protection Act, 2019.
The Central Consumer Protection Authority (CCPA) was established under Section 10 of the Consumer Protection Act, 2019.
Its primary mandate is to regulate matters related to the violation of consumer rights, unfair trade practices, and false or misleading advertisements that are detrimental to the interests of the public and consumers at large. (ANI)