Bhubaneswar, Jan. 11 -- The Central Consumer Protection Authority (CCPA) has taken suo motu action against 27 restaurants across the country for mandatorily levying service charges on food bills, terming the practice a violation of consumer rights and an unfair trade practice under the Consumer Protection Act, 2019.

The action follows a March 28, 2025 judgment of the Delhi High Court, which upheld the CCPA's 2022 guidelines on service charges and ruled that compulsory collection of such charges by restaurants is contrary to law. The court also affirmed the authority of the CCPA to enforce these guidelines.

According to the CCPA, investigations revealed that several restaurants were automatically adding service charges, typically around ...