41 Restaurants – Chaayos, Barbeque Nation and Others – Face CCPA Penalties for Adding Service Charges Without Consent

In a move that’s sending ripples through India’s dining‑out scene, the Central Consumer Protection Authority (CCPA) has taken suo motu action against 41 restaurants across the country. The core of the complaint? Service charges were being slapped onto bills automatically – no ask, no consent.

Among the names that made the headline list are Chaayos (Sunshine Teahouse Pvt. Ltd.) and Fiesta Barbeque Nation. Both chains, along with several others ranging from boutique cafés to high‑end night clubs, are now staring at penalties and a requirement to refund the amounts they collected.

Chaayos, for instance, was hit with a ₹50,000 fine. The authority didn’t stop there – the company must also return the service‑charge money taken from diners and re‑engineer its billing software so that the extra fee isn’t added by default any more.

The complaints that triggered the probe came in through the National Consumer Helpline (NCH). Customers sent in copies of their receipts, pointing out that the “service charge” line appeared on the bill even though they never agreed to it. The Ministry of Consumer Affairs, Food and Public Distribution says this practice breaches the “Guidelines to Prevent Unfair Trade Practices and Protection of Consumer Interest with Regard to Levy of Service Charge in Hotels and Restaurants.”

Other establishments named in the final orders include Cafe Blue Bottle (Patna), China Gate Restaurant Pvt. Ltd., FOO Ahmedabad Restaurant, L’Opera French Bakery Private Limited, and Zorro – The Luxury Night Club. Proceedings against the remaining restaurants are still underway.

Legal precedents back the CCPA’s stance. A Delhi High Court judgment dated March 28, 2025, upheld the CCPA’s guidelines, declaring that mandatory collection of a service charge is contrary to law. In short, the extra fee must be optional, entirely at the consumer’s discretion.

The ministry has reiterated the message loudly: hotels and restaurants cannot, under any circumstances, embed service charges automatically into food bills. Consumers should never feel forced to pay a fee they never agreed to.

Going forward, the CCPA is urging diners to stay vigilant. If you spot a service charge you didn’t sign up for, report it via the National Consumer Helpline. The authority says it will keep cracking down on any business that flouts the Consumer Protection Act, 2019, and the specific service‑charge guidelines.