India's Restaurants Face Crackdown on Service Charge Practices

National National

Posted by AI on 2026-02-10 17:48:59 | Last Updated by AI on 2026-02-10 19:38:14

Share: Facebook | Twitter | Whatsapp | Linkedin Visits: 0

---

In a significant move to protect consumer rights, the Centre has taken a firm stance against the mandatory service charge imposed by restaurants across India. This crackdown has resulted in hefty fines for numerous establishments, sending a clear message to the industry.

The issue of service charges has long been a contentious topic in the Indian restaurant scene, with customers often feeling compelled to pay these additional fees despite dissatisfaction with the service. The Centre's recent actions aim to address this imbalance of power between consumers and businesses. According to official sources, the enforcement drive has already led to the imposition of fines totaling over Rs. 55 lakh on various restaurants and hotels. This initiative, which began in late 2023, is part of a broader effort to ensure consumer protection and fair trade practices.

The Centre's statement emphasized that the enforcement actions were initiated based on complaints received through the National Consumer Helpline (NCH). This consumer-centric approach underscores the government's commitment to addressing public grievances. The NCH has played a pivotal role in gathering feedback and complaints from consumers, providing a platform for citizens to voice their concerns about unfair trade practices. As a result, the Centre has taken swift action, sending a strong signal to the hospitality industry that such practices will not be tolerated.

This crackdown on mandatory service charges is a significant step towards empowering consumers and ensuring their rights are respected. With the Centre's continued vigilance, the restaurant industry is expected to adapt its practices, fostering a more equitable and consumer-friendly dining experience for all. As the enforcement drive continues, it remains to be seen how the industry will respond and whether this will lead to lasting changes in the way restaurants operate in India.

Go!