Is it Legal for Restaurants to Charge a Mandatory ‘Service Charge’ on your Bill?

No, it is illegal for restaurants to charge a mandatory ‘service charge’ on your bill. As per the Central Consumer Protection Authority (CCPA) guidelines issued in July 2022, restaurants cannot automatically add a service charge without the consumer’s explicit consent.

Doing so amounts to an unfair trade practice under the Consumer Protection Act, 2019. Customers have the right to refuse this charge and may file complaints via the National Consumer Helpline (1915), the e-daakhil portal, or the appropriate Consumer Commission.

In Federation of Hotels and Restaurant Associations of India v. Union of India, the Delhi High Court upheld the CCPA’s guidelines, reinforcing consumer rights.