CCPA Cracks Down On 41 Restaurants, Including Chaayos And Barbeque Nation Over Default Service Charge

The Central Consumer Protection Authority (CCPA) has initiated action against 41 restaurants, including Chaayos and Fiesta Barbeque Nation, for allegedly levying service charges by default in violation of its guidelines, according to a Press Information Bureau (PIB) release.

The consumer watchdog has passed final orders in several cases and initiated proceedings against others after receiving complaints through the National Consumer Helpline (NCH), according to a government statement.

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The Ministry of Consumer Affairs said the action follows continued complaints from consumers despite the Delhi High Court upholding the CCPA's guidelines on service charges in restaurants.

The authority said some restaurants continued to levy service charges by default without obtaining customers' explicit consent, amounting to an unfair trade practice under the Consumer Protection Act, 2019.

Following the court's ruling, the CCPA has been monitoring compliance with its service charge guidelines issued on July 4, 2022, which were upheld by the Delhi High Court on March 28, 2025.

Following the court's ruling, the authority received several complaints through the National Consumer Helpline (1915), alleging that restaurants were still adding service charges by default or refusing to refund them when requested.

The authority said its action is aimed at protecting consumer rights and preventing restaurants from compelling customers to pay additional charges while availing services.

Union Minister of Consumer Affairs Pralhad Joshi said: "Reaffirming that service charge is voluntary and entirely at the consumer's discretion, the CCPA has imposed penalties on violators, taken action against restaurants violating consumer protection law and directed them to discontinue the automatic levy of service charge."

The Central Consumer Protection Authority (CCPA) has initiated suo motu action against 41 restaurants for levying service charge by default, based on complaints received through the National Consumer Helpline (NCH).

Reaffirming that service charge is voluntary and entirely at… pic.twitter.com/bESSxvTX4U

— Pralhad Joshi (@JoshiPralhad) July 19, 2026

It reiterated that a service charge is voluntary and cannot be imposed on consumers without their consent.

The CCPA's 2022 guidelines provide that:

• No hotel or restaurant shall add a service charge automatically or by default in the food bill.
• No collection of service charge shall be done by any other name.
• No hotel or restaurant shall force a consumer to pay service charge and shall clearly inform consumers that service charge is voluntary, optional and at the consumer's discretion.
• No restriction on entry or provision of services based on collection of service charge shall be imposed on consumers.
• Service charge shall not be collected by adding it along with the food bill and levying GST on the total amount.

Action taken by CCPA

Chaayos (Sunshine Teahouse Pvt. Ltd.) was among the restaurants against which the CCPA passed a final order, imposing a penalty of Rs 50,000 for automatically levying a service charge.

The authority also directed the company to refund the service charge collected from the consumer.

Additionally, the CCPA instructed Chaayos to modify its software-generated billing system across all its outlets to ensure that service charge or any similar charge are not added to customers' bills by default.

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The authority has also issued final orders against the following restaurant establishments:

1. Cafe Blue Bottle, Patna
2. China Gate Restaurant Pvt. Ltd.
3. Fiesta Barbeque Nation (Barbeque Nation Hospitality Private Limited)
4. FOO Ahmedabad Restaurant (Pebble Street Hospitality Pvt. Ltd.)
5. L'Opera French Bakery Private Limited
6. Zorro – The Luxury Night Club (a unit of Rudra Hospitality Private Limited)
7. Chaayos (Sunshine Teahouse Pvt. Ltd.)

Proceedings against other restaurants are continuing after complaints against them were received and examined, the PIB said.