Forced To Pay Service Charge In Restaurants? Consumer Protection Authority Cracks Down On Unfair Trade Practice

The Central Consumer Protection Authority has initiated suo motu action against 27 restaurants across India for allegedly violating consumer rights by imposing mandatory service charges. The action comes in the wake of a recent Delhi High Court ruling that upheld the CCPA’s 2022 guidelines on service charge collection. Delhi High Court Upholds CCPA Guidelines On March 28, 2025, the Delhi High Court affirmed that the mandatory levy of service charge by restaurants is ‘contrary to law’ and validated the CCPA’s authority to enforce its guidelines. The court held that all restaurant establishments must adhere to the Guidelines to Prevent Unfair…