Hindi English
Login
Image
Image

Welcome to Instafeed

Latest News, Updates, and Trending Stories

Mandatory Service Charge Declared Illegal in India: CCPA Cracks Down on Restaurants – What Diners Need to Know?

Mandatory service charge on restaurant bills is now illegal. CCPA and Delhi High Court crack down—27 restaurants fined, service charge is voluntary only, full consumer rights explained.

Advertisement
Instafeed.org

By Jigyasa Sain | Faridabad, Haryana | Latest News - 14 February 2026

Big news for anyone who eats out: the Central Consumer Protection Authority (CCPA) just slammed the door on mandatory service charges at restaurants. They’re illegal now—plain and simple. The Consumer Protection Act, 2019 backs this up, and the Delhi High Court agrees. So, restaurants can’t sneak in a service charge, call it something else, or force you to pay it.

Things really picked up in early 2026. The CCPA cracked down on 27 restaurants across India for breaking the rules, including big names like Barbeque Nation, Café Blue Bottle in Patna, and Bora Bora at China Gate in Mumbai. Some got slapped with ₹50,000 fines. Others had to refund customers or change the way they bill. The CCPA’s watching closely, taking complaints through the National Consumer Helpline, and says it won’t let things slide.


This all comes from guidelines the CCPA put out back in 2022, which the Delhi High Court stood by in March 2025. Here’s what they say:

  • Service charge is up to you. It’s optional. Restaurants have to tell you that, and you can always say no—they can’t refuse you service or entry if you do.
  • They can’t automatically add a service charge or hide it under some sneaky label.
  • If you don’t agree to pay, they can’t slap GST on that charge.
  • And if you say no, they can’t hassle you about it.

For years, diners have complained about getting hit with surprise 5–10% charges on their bills—often supposedly for “staff welfare.” It’s awkward, especially if you’re at a fancy place. Some people even got threatened or felt pressured if they tried to refuse.

The Delhi High Court spelled it out: making people pay a service charge against their will is flat-out illegal. Now, the CCPA’s handing out fines and making restaurants give back money they shouldn’t have taken.


If you’re eating out in anywhere in India, here’s what you should do:

  • Check your bill every time.
  • If they’ve added a service charge without asking, just tell them you’re not paying it—they have to respect that.
  • If they push back, report them to the National Consumer Helpline (call 1915 or go online). Action’s usually fast.

This move makes eating out a lot fairer and more transparent. No more surprise fees—tipping is your choice, not something forced on you. Next time you dine out, you’re in control.

Advertisement
Image
Advertisement
Comments

No comments available.