The dispute arose when a patron objected to a Rs 401 service fee included in her Rs 4,811 dinner bill, which the venue refused to remove. Proceedings were conducted ex parte because the establishment failed to appear before the commission despite receiving an opportunity to present its case. Citing Central Consumer Protection Authority guidelines from July 4, 2022, the commission ruled the forced charge an unfair trade practice and ordered full compensation.
Key points
Restaurants are legally prohibited from levying mandatory service fees on customers by de…: Restaurants are legally prohibited from levying mandatory service fees on customers by default without their consent.
The establishment must pay Rs 20,000 for harassment and Rs 11,000 to cover the complainan…: The establishment must pay Rs 20,000 for harassment and Rs 11,000 to cover the complainant's litigation expenses.
Denying requests to remove default service charges constitutes a deficiency in service an…: Denying requests to remove default service charges constitutes a deficiency in service and an unfair trade practice.
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GURGAON: A dinner outing with friends in Gurgaon ended in a consumer dispute after a woman was charged an additional 10% service fee despite asking the restaurant to remove it. The Gurugram District Consumer Disputes Redressal Commission has directed the restaurant to pay her Rs 31,000, including compensation for mental harassment and litigation expenses. It has also ordered a refund of the Rs 401 service charge.
The dispute dates back to May 16, 2026, when the woman visited the restaurant with her friends for dinner. She alleged that the bill included a service charge of Rs 401, equivalent to 10% of the amount. She objected to the additional charge and asked the restaurant to remove it. However, the establishment allegedly refused, leaving her with no option but to pay the entire bill of Rs 4,811, including the disputed fee.
The woman later approached the consumer commission, arguing that the restaurant had violated the Central Consumer Protection Authority's (CCPA) guidelines on service charges. The restaurant did not appear before the commission despite being given an opportunity to respond. The proceedings were…
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