India, March 31 -- In a significant victory for consumer rights, the Delhi high court has upheld a consumer body's directive against the automatic levy of service charge in restaurants and hotels, holding that allowing such a practice would impose an "extraordinary burden" on consumers without their explicit consent.

The verdict, delivered by justice Prathiba M Singh on March 28, reinforces the guidelines issued by the Central Consumer Protection Authority (CCPA) in 2022, affirming that consumers have the right to refuse payment of service charges, irrespective of the quality of service . "A mandatory levy of service charge by restaurant establishments is against public interest and undermines the economic as well as social fabric of con...