CCPA Directs Barbeque Nation to Discontinue Mandatory Service Charges Across All Outlets

New Delhi, 11th February 2026: The Central Consumer Protection Authority (CCPA) has issued a directive to Barbeque Nation Hospitality Limited (BNHL), ordering the restaurant chain to immediately discontinue the practice of levying service charges at all its outlets. The order, issued on February 4, 2026, reinforces that service charges are voluntary and cannot be forced upon consumers.

The order, passed by Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra, follows suo-moto cognizance taken by the authority regarding a grievance filed on the National Consumer Helpline (NCH).

The investigation stemmed from a complaint filed by a consumer, Abhishek Roy, regarding an invoice dated January 18, 2025. The consumer alleged that “Fiesta Barbeque Nation” had levied a service charge of ₹335 in addition to GST, violating consumer rights.

While the restaurant eventually refunded the ₹335 to the customer on April 16, 2025, following an escalation, the CCPA proceeded to investigate the broader policy of the chain regarding these charges.

The CCPA’s decision relies heavily on a landmark judgment by the Hon’ble High Court of Delhi dated March 28, 2025 (National Restaurant Association of India & Ors. v. Union of India & Anr.). The Court held that mandatory service charges act as a “violation of consumer rights” and are an “unfair trade practice.” The Court ruled that tipping or service charges must remain entirely at the customer’s discretion and cannot be added to the bill by default.

In its defense, Barbeque Nation submitted that at the time of the specific incident (January 2025), the levy was protected by an interim judicial order. However, the restaurant chain confirmed to the Authority that following the final Delhi High Court judgment in March 2025, they had completely stopped charging service fees at their restaurants.

BNHL stated that any service charge collected prior to the final judgment is being refunded whenever a customer requests it.

Noting the restaurant’s submission as a formal undertaking, the CCPA disposed of the matter with a specific direction to BNHL to ensure the “discontinuation of practice of levying service charge forthwith, if any, in any of its outlet.”

This order serves as a stern reminder to the hospitality industry that the inclusion of automatic service charges is illegal under Section 2(47) of the Consumer Protection Act, 2019.