CCPA Takes Action Against 5 Delhi Restaurants, Including Chaayos & Barbeque Nation - Reason?

As a result of non-refund of service charges by well-known five Delhi-based food establishments, the Central Consumer Protection Authority (CCPA) has taken suo-moto cognizance of the matter. The non-compliance of refund of service charge comes even after the Delhi High Court held the same as mandatory last month. 

In an official statement, the Ministry of Consumer Affairs, Food & Public Distribution Ministry said action was being taken against, “Makhna Deli, Xero Courtyard, Castle Barbeque, Chaayos, and Fiesta by Barbeque Nation. Notices have been issued under the Consumer Protection Act, 2019, directing the restaurants to refund the service charge amounts.”

Further, the ministry informed that, “This measure is aimed at reducing the undue pressure on Consumers to pay additional amount at the time of availing services at any Restaurant as no Hotel or Restaurant shall force a consumer to pay Service Charge or Service Charge shall not be collected from consumers by any other name.”

Fresh Trouble For Delhi Eateries Over Non-Compliance of CCPA Guidelines

On July 4, 2022, the consumer protection authority had issued guidelines seeking to curb unfair trade practices and protect consumer interests linked with service charges in hotels and restaurants. As per the official guidelines, no hotels or restaurant shall add service charge automatically or by default in the food bill, no collection of service charge shall be done by any other name, and no hotel or restaurant shall force a consumer to pay service charge. 

“Subsequently, it came to notice…through complaints received on the National Consumer Helpline (1915), that grievances had been registered alleging that certain restaurants continued to impose a mandatory service charge without obtaining prior consent from consumers, thereby disregarding consumer rights and indulged in unfair trade practices as per the Consumer Protection Act, 2019,” the ministry informed. 

The Central Consumer Protection Authority (CCPA) is considered as a regulatory authority, established under the Consumer Protection Act (CPA), 2019 in India. It works to promote and enforce consumer rights, regulate matters related to violation of consumer rights, misleading advertisements, and prevalent unfair trade practices.