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Service Charge Added Without Consent Triggers Fines for Nationwide Restaurants

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News Analysis IndiaReporter
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July 19, 2026
03:50 PM
Service Charge Added Without Consent Triggers Fines for Nationwide Restaurants

The Central Consumer Protection Authority (CCPA) has taken decisive action against 41 food‑service outlets that were automatically tacking on a service charge to diners’ invoices. The enforcement was initiated after the National Consumer Helpline received a series of reports, each supported by scanned bills that displayed the extra fee despite no written or verbal agreement from customers. The authority cited a clear violation of the July 2022 consumer‑protection guidelines, which stipulate that service charges must be voluntary and clearly communicated. In the case of the tea‑house chain Chayos, the CCPA levied a fine of Rs 50,000, mandated a full refund of the illicit charges, and instructed the firm to overhaul its billing software to prevent recurrence. Ongoing probes are being conducted on the remaining restaurants, and further sanctions are expected if non‑compliance persists. Consumers are encouraged to report any similar incidents using the toll‑free helpline number 1915 or the NCH web portal.

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