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CCPA Penalises 41 Restaurants for Automatically Adding Service Charges

The consumer watchdog ordered refunds, fines and billing‑software fixes to enforce rules that make service charges voluntary.

Overview

  • The CCPA took suo motu action on July 19, 2026, against 41 restaurants after consumer complaints filed through the National Consumer Helpline included bills showing service charges added without customers' consent.
  • In a final order, Chaayos was fined ₹50,000, directed to refund the disputed service charge to the complainant and required to change its software so service charges cannot be added automatically at any outlet.
  • The authority has also passed orders or opened proceedings against other outlets such as Cafe Blue Bottle, China Gate, Fiesta Barbeque Nation, L'Opera and Zorro — and more cases are still under examination.
  • The CCPA based its action on its July 2022 Guidelines on Levy of Service Charge and the Consumer Protection Act, a legal position the Delhi High Court has upheld that treats default service charges as an unfair trade practice.
  • The Department of Consumer Affairs urged consumers to report automatic service‑charge levies to the National Consumer Helpline at 1915, and the rulings are likely to push restaurants nationwide to fix billing systems and refund affected customers.