No More Forced Tips: CCPA Cracks Down on Restaurants Adding Unauthorised Service Charges:

CCPA cracks down on restaurants for illegally adding automatic service charges, enforcing consumer rights and fining violators.
CCPA Takes Strict Action Against 27 Restaurants for Violating Consumer Rights

No More Forced Tips: CCPA Cracks Down on Restaurants Adding Unauthorised Service Charges
The Central Consumer Protection Authority (CCPA) has taken suo moto action against 27 restaurants across India for violating consumer rights and using unfair business practices under Section 2(47) of the Consumer Protection Act, 2019.
This action comes after the Delhi High Court’s ruling on March 28, 2025, which supported CCPA’s rules on service charges. Restaurants cannot force customers to pay a service charge and must follow CCPA’s guidelines, says court. It also confirmed that CCPA has the legal power to make sure these rules are followed.
The guidelines from the CCPA issued on July 4, 2022, regarding service charges in hotels and restaurants say that:
- No hotel or restaurant will add a service charge automatically or by default to the food bill.
- No service charge will be collected by any other name.
- Consumers have the right to refuse to pay the service charge if they don’t want to.
- Consumers should know exactly what they are being charged for, and they should not be misled into paying extra.
- Refusal to pay a service charge cannot be used as a reason to restrict entry or access to services.
- Service charges should not be included in the bill or taxed under GST.
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Vanshika verma
Content Writer
Vanshika Verma is a Content Writer with 1+ year of experience at Studycafe.in. A B.Com graduate from Delhi University, She writes articles on Finance, Tax, ICAI, GST, and the latest financial news, with a focus on making complex topics easy for readers and professionals.
Studycafe
Delhi, Delhi, India
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