The Central Consumer Protection Authority (CCPA) has initiated suo motu action against 41 restaurants across the country for adding service charges to customer bills, stating that this was a violation of consumer rights and an unfair trade practice.“Reaffirming that service charge is voluntary and entirely at the consumer’s discretion, the CCPA has imposed penalties on violators,” Consumer Affairs Minister Pralhad Joshi said on a social media platform. He said the authority has directed the erring restaurants to discontinue the automatic levy of service charge .Joshi said the action was taken based on complaints received through the National Consumer Helpline (NCH).Among the final orders passed, CCPA fined Chaayos (run by Sunshine Teahouse Pvt Ltd) ₹50,000 for the default and ordered it to refund the amount to the affected customers, an official statement noted. “The company has also been asked to modify its software-generated billing system across all outlets to ensure the charge is not added automatically,” it added.The statement added that CCPA has also passed final orders against Cafe Blue Bottle, Patna; China Gate Restaurant Pvt Ltd; Fiesta Barbeque Nation (Barbeque Nation Hospitality Pvt Ltd); FOO Ahmedabad Restaurant (Pebble Street Hospitality Pvt Ltd); L’Opera French Bakery Pvt Ltd; and Zorro - The Luxury Night Club (Rudra Hospitality Pvt Ltd).“Further proceedings are underway against other restaurants where complaints have been received and examined,” the ministry added.Under the guidelines notified in July 2022, restaurants cannot add a service charge by default or disguise it under another name, cannot pressure customers into paying it, and cannot deny service to those who decline. The rules also bar clubbing the charge with the food bill or applying GST on it.The Ministry pointed out that as per the Delhi High Court ruling in March last year had upheld CCPA’s guidelines and made clear that mandatory service charges have no legal basis and that all restaurants must fall in line, with the CCPA empowered to enforce this.The CCPA has urged diners who encounter such charges to lodge complaints via the toll-free NCH number (1915) or its online platform, and said it would keep monitoring the sector for violations.Published on July 19, 2026