The Central Consumer Protection Authority (CCPA) recently ordered a luxury restaurant in Delhi to pay a fine of Rs 1 lakh and held it liable for unfair trade practice, misleading advertisement and violating consumer rights by “automatically” adding a service charge to customers’ food bills and forcing them to ask for a waiver.

Chief commissioner Nidhi Khare and commissioner Anupam Mishra were hearing two complaints filed against a luxury restaurant in Delhi claiming that it was adding a service charge to food bills “by default”.

“When a restaurant displays prices on its menu, a component of service is already inherent in the pricing of the food and beverages offered, ensuring consumers are informed of the actual cost upfront.…