The Central Consumer Protection Authority (CCPA) has taken a firm stance against consumer rights violations by initiating suo motu action against five Delhi-based restaurants.
Makhna Deli, Xero Courtyard, Castle Barbeque, Chaayos, and Fiesta by Barbeque Nation have been called out for not refunding mandatory service charges despite clear guidelines and a judgment by the Delhi High Court.
The CCPA guidelines issued on July 4, 2022, stipulate that service charges must be voluntary, optional, and at the consumer’s discretion. The Delhi High Court upheld these guidelines on March 28, 2025, reinforcing that service charges cannot be added automatically or collected under any other name.
Complaints lodged with the National Consumer Helpline (NCH) highlighted ongoing violations, with consumers alleging undue imposition of service charges without their consent. The CCPA has now issued notices directing these restaurants to refund the collected service charges, emphasising the protection of consumer interests and prevention of unfair trade practices.
The CCPA, established under the Consumer Protection Act, 2019, plays a crucial role in safeguarding consumer rights and addressing grievances across India.
