The Central Consumer Protection Authority slapped Barbeque Nation Hospitality Ltd with a strict order to immediately halt mandatory service charges after a customer complaint exposed sneaky billing practices. The February 4 directive came after CCPA took suo motu notice of a National Consumer Helpline grievance from January 2025, where diners got hit with an automatic fee plus GST on top, sparking cries of unfair trade tricks.
CCPA Cracks Down on Hidden Charges:
The Central Consumer Protection Authority (CCPA) observed that the restaurant chain’s imposition of a default 10 percent service charge was in violation of the 2022 guidelines and relevant rulings of the Delhi High Court, which clearly state that such charges are voluntary in nature. According to the complaint, a service levy was added to the bill after the meal without prior disclosure or any option for the customer to opt out. The amount was subsequently subjected to taxation, a practice the CCPA described as non-transparent and coercive.
Barbeque Nation claimed it stopped the practice chain-wide following a March 2025 High Court ruling on forced charges, even refunding the specific Rs 335 complaint. But the CCPA wasn’t buying it, requiring full suspension, billing adjustments, and refunds as needed to protect consumers from forced expenditures. The authority highlighted that service payments should be clearly visible on menus, remain really optional, and avoid GST layering. There are no restrictions on admission or reductions in services for individuals who choose to refuse; the decision remains entirely voluntary for consumers.
The Service Charge Story Strikes Restaurants Hard:
This ties Barbeque Nation into the CCPA’s broader assault on bill padding. Just last month, 27 locations, including Cafe Blue Bottle Patna and China Gate Mumbai, received fines of up to Rs 50,000, refunds, and system overhauls for similar offenses, prompted by NCH invoices displaying auto-adds. In 2025, the Delhi High Court fully supported the CCPA, describing compelled fees as onerous contracts and unfair practices under Consumer Protection Act Sections 2(46) and 2(47). Restaurants can freely charge their prices, but adding extras shouts unreasonable, the bench ruled, passing reasonability standards.
The July 2022 guidelines state unequivocally that there would be no GST on tips, complete disclosure, voluntary disclosure, and no penalties for nonpayment. Suo motu strikes are driven by CCPA enforcement through probes and helpline tips. With more than 230 locations cooking buffets around the country, Barbeque Nation is currently rushing to update its menus, payment systems, and employee training to provide optional jars or digital prompts. While diners praise transparency, chains worry about tip pools drying up without auto-flow.
Why Fees Sparked Backlash:
Patrons have long complained that service charges hide genuine expenses, arrive unexpectedly at bill-drop, and provide no information about staff splits or quality linkages. “Would you pay for lousy service? “No thanks,” echoed forums, prompting LocalCircles polls indicating 59 percent hit fees at AC locations while resenting mandates. Chains defended themselves as wage enhancers in the face of tight margins, but the CCPA prioritized buyer rights such as upfront pricing and voluntary extras. Following the verdict, restaurants must spell out menu totals without any hidden fees, and tip jars must be merit-based. Barbeque joins fined peers, showing that there are no holy cows. Some advocate for “service-inclusive” pricing, while others prefer wage changes over bill tricks.
Road Ahead for Dining Bills:
Restaurants want menu flexibility without nanny controls, but the CCPA’s hammer creates a culture of fair play. In a genuine meritocracy, diners take charge and may tip more for stars and less for drecks. Holdouts are discouraged via spot checks, enforcement ramps through NCH, and fines. Barbeque’s case establishes a precedent: file a complaint, get your money back, and make changes. Transparent tabs have grown commonplace as informal eating grows, eliminating unexpected expenses. Customers keep an eye on bills, and chains either adjust or suffer. India’s restaurant industry is moving toward voluntary gratuities and honest pricing, giving customers more options with each bite.
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