CCPA initiates suo motu action against 41 restaurants for levying service charge by default; action based on consumer complaints received through National Consumer Helpline

The Central Consumer Protection Authority (CCPA) has taken suo motu action against 41 restaurants nationwide for automatically levying service charge without consumers’ explicit consent, based on complaints filed through the National Consumer Helpline. Investigations found the practice breached the Guidelines to Prevent Unfair Trade Practices (issued 4 July 2022) and amounted to an unfair trade practice under Section 2(47) of the Consumer Protection Act, 2019. The Delhi High Court (28 March 2025) upheld these guidelines, declaring mandatory service‑charge collection illegal. CCPA imposed a ₹50,000 penalty on Chaayos and ordered reimbursement of collected charges, directing the firm to modify its billing software. Similar orders were issued to several other establishments, and the Authority urged consumers to report violations via the helpline (1915).