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CCPA Fines Bora Bora Operator ₹50,000 for Illegal Mandatory Service Charge

The order enforces court-backed rules requiring voluntary tipping with transparent billing.

Overview

  • The CCPA’s December 29 order cites a 10% service charge added by default and GST levied on that charge, contrary to guidelines.
  • An investigation found the fee was automatically applied to all bills from March 28 to April 30, 2025, showing the charge was not discretionary.
  • The case began with a Mumbai consumer’s complaint to the National Consumer Helpline alleging refusal to remove the fee and misbehavior.
  • Regulators directed software changes to eliminate default service charges, mandated functional grievance channels, and required a compliance report within 15 days.
  • The restaurant’s claim that the charge was optional and later discontinued lacked evidence, and the refund occurred only after intervention, as authorities continue broader enforcement following the Delhi High Court’s March ruling.