Lawyer gets food bill with Rs 129 service charge without consent, wins Rs 5,000 payout

The District Consumer Disputes Redressal Commission-II, Chandigarh, recently held a Bathinda-based restaurant guilty of deficiency in service and unfair trade practice for levying Rs 129 service charge without consent.

President Amrinder Singh Sidhu and member B M Sharma observed that automatically levying and collecting a service charge without obtaining the consent amounts to a deficiency in service and also constitutes an unfair trade practice.

“The act of the OP in automatically levying and collecting service charge without obtaining the consent of the complainant amounts to deficiency in service and also constitutes an unfair trade practice,” the bench held in its order dated June 19.

Charged Rs 129 service charge

The complaint was filed by a high court advocate, who visited the restaurant in Bathinda on October 5, 2025.

According to the complaint, the restaurant issued two bills for Rs 2,291 and Rs 1,191, adding service charges of Rs 79 and Rs 49.9, respectively, totalling Rs 129, without informing him beforehand or obtaining his consent.

He alleged that the restaurant refused to remove the charge despite his objection.

It was argued that, as per the guidelines on the levy of service charge in hotels and restaurants issued by the Central Consumer Protection Authority (CCPA) on 4 July 2022, service charge is optional and voluntary and cannot be imposed or collected forcibly, cannot be added automatically to the bill, and cannot be collected under any other name.

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He further contended that automatically levying a service charge constitutes a direct violation of the aforesaid CCPA guidelines.

It was stated that the restaurant failed to inform the complainant that payment of service charge was optional and refused to remove the said charge upon objection.

Alleging deficiency in service and unfair trade practice, the complainant moved the consumer commission.

The restaurant failed to appear before the commission despite service of notice and was proceeded against ex parte.

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‘Can’t compel consumer’

The commission observed that its absence warranted an adverse inference, leaving the complainant’s evidence unrebutted.

“The OP did not appear to contest the claim of the complainant and preferred to be proceeded ex-parte. This act of the OP draws an adverse inference against it. The non appearance of the OP shows that it has nothing to say in its defence against the allegations made by the complainant,” the order read.

The commission observed that the restaurant had failed to produce any evidence to justify the levy of the service charge.

It noted that there was no evidence to prove that the complainant had voluntarily agreed to pay service charge or had consented to its inclusion in the bill and observed that the service charge was automatically added.

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“The consumer cannot be compelled to pay any amount over and above the price of goods and services availed unless the same is legally permissible and duly disclosed,” the commission ruled.

It noted that the act constituted a deficiency in service and unfair trade practice and granted compensation.

The commission directed the restaurant to refund Rs 129 collected as service charge and pay a lump sum of Rs 5,000 towards compensation for harassment and litigation expenses.

It directed the order to be complied with within 45 days of receipt of its certified copy.

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Takeaway

The ruling reinforces that restaurants cannot automatically add service charges to customers’ bills without their prior knowledge and explicit consent. The decision underscores that service charges are voluntary, and in the absence of proof that a customer agreed to pay them, restaurants risk being directed to refund the amount along with compensation for the harassment caused.

Consumers facing grievances may contact their respective state consumer helplines (Chandigarh helpline: 1800 300 11 007) or call the National Consumer Helpline at 1915 for assistance.