Delhi High Court to Hear Restaurant Service Charge Ban Appeals on May 9

The Delhi High Court will hear on May 9 the appeals filed by NRAI and FHRAI challenging the CCPA's 2022 guidelines banning mandatory restaurant service charges.

A single judge had upheld the ban, calling such charges unfair trade practices. The Court also ruled that charges must be voluntary and clearly disclosed.

Restaurant bodies argue that service charges are an 80-year-old standing industry norm tied to employee compensation.

They contend that the issue falls under labour law, not consumer law, and also added that the Central Consumer Protection Authority (CCPA) lacks jurisdiction to regulate pricing structures.