CCPA Takes Action Against Restaurants for Mandatory Service Charges

The Central Consumer Protection Authority (CCPA) has taken significant steps against 41 restaurants for automatically adding service charges, which are meant to be voluntary. Union Minister Pralhad Joshi highlighted that consumers have the right to choose whether to pay a service charge. The CCPA has imposed penalties on several establishments, including Chaayos and Barbeque Nation, and has urged consumers to report any violations through the National Consumer Helpline. This initiative aims to protect consumer rights and ensure transparency in restaurant billing practices.

By Narendra Chaudhary Jul 19, 2026, 17:45 IST

CCPA's Initiative Against Service Charge Violations

The Central Consumer Protection Authority (CCPA) has launched a suo motu investigation into 41 restaurants for imposing service charges by default. This action follows numerous complaints received via the National Consumer Helpline (NCH), as stated by Pralhad Joshi, the Union Minister of Consumer Affairs, Food and Public Distribution, in a recent social media update.

Joshi emphasized that service charges should be voluntary and left to the consumer's choice. The CCPA has penalized those who have breached consumer protection regulations, instructing these establishments to cease the automatic addition of service charges. Consumers are encouraged to report any such infractions through the National Consumer Helpline at 1915.

Among the establishments penalized are Chaayos, Barbeque Nation, and L'Opera French Bakery Private Limited. The authority reiterated that service charges are not compulsory and cannot be automatically included by restaurants.