CCPA Directs Barbeque Nation To Stop Mandatory Service Charge, Cites Consumer Rights
CCPA Directs Barbeque Nation To Stop Mandatory Service Charge, Cites Consumer Rights
The order follows a customer complaint and the Delhi High Court’s ruling that service charges cannot be imposed by default.
The Central Consumer Protection Authority (CCPA) has directed Barbeque Nation Hospitality Limited (BNHL) to immediately stop levying service charges at any of its outlets, calling the practice a violation of consumer rights and a serious issue under India’s consumer protection framework.
The regulator’s action comes after a complaint was filed with the National Consumer Helpline (NCH) in March 2025. The complaint alleged that Barbeque Nation had added a mandatory service charge of ₹335 to a customer’s bill without consent, raising concerns over unfair billing practices in restaurants.
Following the grievance, the CCPA took suo motu cognisance of the matter and initiated an investigation. The authority referred to the Delhi High Court’s March 2025 judgment, which upheld the government’s guidelines prohibiting restaurants from automatically adding service charges to bills.
According to the order dated February 4, the restaurant initially informed the customer that the service charge would be adjusted during a future visit. However, after the complainant requested a direct refund through the NCH mechanism, BNHL refunded the full ₹335 amount on April 16, 2025. The grievance was officially closed on April 22.
Barbeque Nation also submitted before the authority that it had stopped levying service charges altogether after the Delhi High Court’s final ruling on March 28, 2025.
The investigation noted that the service charge applied earlier, in January 2025, was covered under an interim judicial order and therefore was not illegal at that time. However, the CCPA stressed that following the final judgment, restaurants cannot impose such charges by default.
After reviewing the investigation report, the authority recorded that the full service charge had been refunded, and the company had shown compliance by discontinuing the practice post-judgment. It also observed that the specific conduct in this case did not amount to an unfair trade practice under the Consumer Protection Act, 2019, given the interim protection applicable at the time.
The order also strongly reiterated the CCPA’s 2022 guidelines, which clearly state that service charges are voluntary and cannot be added automatically or coercively. Any default inclusion of such charges misleads consumers and violates their right to make informed choices.
The Delhi High Court, in its 2025 ruling, held that service charges must remain optional. Restaurants cannot force customers to pay them or present them as mandatory additions to the bill.
Barbeque Nation is one of India’s major casual dining chains, operating around 200 outlets in India, along with international presence in the UAE, Malaysia and Oman. In the first quarter of FY26, the company reported a total income of ₹298.91 crore, slightly lower than ₹305.70 crore reported in the previous quarter.
The CCPA’s directive is being seen as a significant reminder to the hospitality industry that consumer consent is essential and billing transparency is non-negotiable under Indian law.
