Forty-one restaurants, including Chaayos and Zorro-Night Club, have been penalised for adding service charges to customer bills in violation of consumer rights and fair trade practices.The action was initiated by the Central Consumer Protection Authority (CCPA) based on complaints received through the National Consumer Helpline.In a social media post, Union Minister of Consumer Affairs, Food and Public Distribution Pralhad Joshi said the CCPA had imposed penalties on violators, taken action against restaurants violating consumer protection law, and directed them to discontinue the automatic levy of service charge.He said service charge is voluntary and entirely at the consumer’s discretion, adding that consumers can report such violations through the National Consumer Helpline 1915.In one such case, the CCPA passed an order against Chaayos, operated by Jattvibeshine Teahouse Private Limited, imposing a Rs 50,000 penalty and directing the company to reimburse the service charge collected from the complaining consumer.The case began after a customer, Shashank Sood, filed a complaint with the National Consumer Helpline on March 30, 2025, alleging a Chaayos outlet had charged him a separate “service tax” beyond CGST and SGST. The bill in question showed a Rs 15.33 service charge added to a Rs 438 order, bringing the final amount to Rs 476.Sood alleged the outlet refused to refund the charge, claiming it was mandatory and non-refundable as per the company policy.The action rests on the CCPA’s Guidelines to Prevent Unfair Trade Practices and Protection of Consumer Interest with Regard to Levy of Service Charge in Hotels and Restaurants, issued in July 2022, which bar restaurants from adding service charge automatically or by any other name. It requires that any such charge be clearly presented as voluntary and at the customer’s discretion, and prohibit restricting service to customers who decline to pay it.The Delhi High Court’s March 2025 ruling had upheld the validity of these guidelines and confirmed the CCPA’s authority to enforce them across the nation.Cafe Blue Bottle, Patna; China Gate Restaurant Pvt Ltd; Fiesta Barbeque Nation; FOO Ahmedabad Restaurant; and L’Opera French Bakery Private Limited are some of the other outlets slapped with the CCPA notice.Further proceedings are underway against other restaurants where complaints have been received and examined, the consumer protection authority said.In October 2024, the CCPA had issued notices to several quick commerce companies for failing to comply with mandatory product disclosure requirements. The authority gave the companies 15 days to respond to the notices.Later, in December 2024, the Food Safety and Standards Authority of India (FSSAI) released an advisory to quick commerce platforms seeking full details on the manufacturing and expiry details of products.