Say Goodbye to Service Charges now!
Are you worried about your restaurant bills when you plan to treat your friends for your birthday? Does high service charges stop you from going to restaurants for your family get-togethers? If that is the reason, then the recent rule of the Delhi High Court will give you some relief. The Delhi High Court ruled that service charges on food bills are voluntary and dismissed petitions challenging the CCPA’s (Central Consumer Protection Authority) guidelines prohibiting mandatory imposition by hotels and restaurants.
It is not only unlawful but ‘misleads the consumer’, says Delhi High Court. Consumers can pay a voluntary tip and the service charge should not be imposed upon. In a landmark ruling, Justice Pratibha M Singh observed that collecting a mandatory service charge is a violation of consumer rights and should not be compulsory.
While dismissing the plea by two restaurant associations, National Restaurant Association of India (NRAI) and Federation of Hotel and Restaurant Associations challenging the Central Consumer Protection Authority’s (CCPA) July 2022, The Delhi High Court said that service charge is nothing but a voluntary tip.