Forcing a consumer to pay service charge despite objection amounts to unfair trade practice and deficiency in service, the district consumer disputes redressal commission stated while directing One 8 Commune, a restaurant in Mohali, to refund ₹531 along with 9% annual interest.
The commission also directed the restaurant to pay ₹5,000 to the consumer as compensation for mental agony, harassment and litigation expenses.
Complainant Ravi Inder Singh, a resident of Chandigarh, said that he had visited the restaurant with his family for dinner on April 20, 2025. He was billed ₹6,284, including a 10% service charge. Singh objected to the levy and asked the restaurant manager to remove it, but the latter refused, following which he paid the entire amount.
The commission relied on the Central Consumer Protection Authority (CCPA) guidelines issued on July 4, 2022, which state that hotels and restaurants cannot automatically or by default add service charge to food bills and consumers cannot be compelled to pay it.
The panel observed that the complainant had specifically objected to the charge before making the payment, while the restaurant failed to establish that he had given any prior consent or voluntary authorisation for the levy.
{{/usCountry}}The panel observed that the complainant had specifically objected to the charge before making the payment, while the restaurant failed to establish that he had given any prior consent or voluntary authorisation for the levy.
{{/usCountry}}The restaurant and its director did not appear before the commission despite being served notice and were proceeded against ex-parte. The complainant’s evidence therefore remained unrebutted and unchallenged.
The commission directed the opposite parties to comply with the order within 45 days of receiving its certified copy. In case of non-compliance, the principal amounts will carry interest at 12% per annum from the date of the order until realisation.