CCPA acts against 41 restaurants for levying service charge by default
The Central Consumer Protection Authority (CCPA) initiated suo motu action against 41 restaurants for adding service charge to bills by default, it said on 19 July 2026.
Summary
The Central Consumer Protection Authority (CCPA) initiated suo motu action against 41 restaurants across the country for adding service charge to consumers' bills by default, based on complaints with invoices received through the National Consumer Helpline (NCH). The CCPA found that the automatic levy violated its Guidelines on levy of service charge in hotels and restaurants and amounts to an unfair trade practice under Section 2(47) of the Consumer Protection Act, 2019. The Delhi High Court, in its judgment of 28 March 2025 in National Restaurant Association of India v. Union of India, upheld the CCPA's service charge guidelines and held that mandatory collection of service charge is contrary to law.
Key facts
- Authority
- Central Consumer Protection Authority (CCPA)
- Action
- Suo motu action against 41 restaurants
- Complaints via
- National Consumer Helpline (NCH)
- Violation
- Unfair trade practice – Section 2(47), Consumer Protection Act, 2019
- Court backing
- Delhi High Court, 28 March 2025, upheld CCPA guidelines
Practice MCQs 2 questions
Against how many restaurants did the CCPA initiate suo motu action in July 2026 for levying service charge by default?
Show answer
Correct answer: B — 41
CCPA initiated suo motu action against 41 restaurants based on National Consumer Helpline complaints.
Under which section of the Consumer Protection Act, 2019 did the CCPA find the default levy of service charge to be an unfair trade practice?
Show answer
Correct answer: D — Section 2(47)
CCPA held that the practice amounts to an unfair trade practice under Section 2(47) of the Consumer Protection Act, 2019.