New Delhi, March 29 -- The Delhi high court on Friday prohibited hotels and restaurants from automatically adding a "service charge" to food bills, affirming the Central Consumer Protection Authority (CCPA)'s 2022 guidelines and holding that such a levy infringes upon consumer rights.

The ruling, delivered by justice Prathiba M Singh, entitles customers to pay only for the price of the food, without paying charges for services offered by restaurants, and prohibits establishments from adding such charges to bills by default.

In her 131-page ruling, the judge opined that service charge or "tip" is a voluntary payment by customers and cannot be compulsory or mandatory. Such a charge, she said, created an unfair pricing structure lacking tr...