In a major regulatory enforcement action safeguarding diner rights, the Central Consumer Protection Authority (CCPA) initiated suo motu proceedings against 41 food and beverage establishments nationwide, including prominent chains such as Chaayos and Barbeque Nation. The ministry confirmed the regulatory intervention followed verified consumer invoices submitted to the National Consumer Helpline (NCH), which evidenced mandatory service charges applied without explicit customer consent.
The regulatory watchdog concluded that automatically embedding service fees directly violates the July 2022 Guidelines to Prevent Unfair Trade Practices and constitutes an unfair trade practice under Section 2(47) of the Consumer Protection Act, 2019. Enforcing the framework upheld by the Delhi High Court in National Restaurant Association of India vs. Union of India, the CCPA penalised tea chain Chaayos (Sunshine Teahouse Pvt. Ltd.) ₹50,000 while ordering a full fee reimbursement.
Additional final orders were issued against regional entities, including Cafe Blue Bottle, China Gate Restaurant, FOO Ahmedabad, L’Opera French Bakery, and Zorro – The Luxury Night Club. Under existing regulations, establishments cannot make service fees compulsory, hide them under alternative nomenclature, refuse service to opt-out patrons, or calculate GST on the disputed fee amounts.
