18 Feb 2026
The Central Consumer Protection Authority (CCPA) termed it an unfair trade practice as per the Consumer Protection Act, 2019.
Acting on verified consumer complaints, the CCPA penalised 27 establishments, ordered refunds, and directed restaurants to modify billing systems to prevent automatic addition of service charges.
This enforcement is supported by a March 2025 Delhi High Court ruling that backed the CCPA’s 2022 guidelines and affirmed the authority’s statutory power to enforce them. It confirms that service charges must be voluntary and cannot be added by default, disguised under alternative names, or used to levy GST.
Investigations revealed systematic violations, including cases at Café Blue Bottle in Patna and Bora Bora in Mumbai, where 10% charges were added automatically. Penalties ranged from ₹30,000 to ₹50,000.
The CCPA emphasised zero tolerance going forward, reiterating that consumer choice and billing transparency are legally non-negotiable.
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