Mumbai, February 10: The Central Consumer Protection Authority (CCPA) has officially directed Barbeque Nation Hospitality Limited to stop the mandatory collection of service charges at its outlets. The order, finalised in early February 2026, reinforces a landmark 2025 Delhi High Court ruling which established that service charges are voluntary contributions and cannot be added to a bill by default. The regulatory action began after the CCPA took suo motu cognisance of a grievance filed through the National Consumer Helpline (NCH).

A customer reported that a Barbeque Nation outlet had levied a service charge of INR 335 in addition to GST on a bill in January 2025. While the restaurant initially offered to adjust the disputed amount against the customer's future visit, the consumer pushed for a direct reimbursement. Under the NCH mechanism, a full refund was eventually issued on April 16, 2025, leading to the formal closure of the individual grievance. FirstCry Slapped With INR 2 Lakh Fine by CCPA for Misleading Ads and Unfair Trade Practices.

Legal Context and Compliance

The CCPA's investigation noted that the restaurant's billing practice in early 2025 was technically protected at the time by an interim judicial order. However, the legal landscape shifted significantly on March 28, 2025, with the High Court’s final judgment in National Restaurant Association of India v. Union of India.

In that ruling, the court upheld the CCPA's guidelines, stating:

  • Voluntary Nature: Service charges or tips must be at the sole discretion of the consumer.

  • No Default Entry: Restaurants are prohibited from adding these charges to the bill automatically.

  • Transparency: Establishments must clearly communicate that such payments are optional.

Authority's Final Findings Against Barbeque Nation

The CCPA concluded that Barbeque Nation has since aligned its operations with the final court judgment. The Authority recorded that the chain has discontinued the default levy and has committed to refunding any historical service charges upon a customer's request. Misleading Ads Crackdown: CCPA Imposes INR 77.6 Lakh Penalty on 24 Coaching Institutes for Misleading Advertisement in India.

Consequently, the CCPA ruled that the restaurant’s current conduct does not constitute an "unfair trade practice" under the Consumer Protection Act, 2019. By formally directing the permanent discontinuation of the practice and closing the proceedings, the regulator has set a clear enforcement benchmark for the hospitality industry.

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(The above story first appeared on LatestLY on Feb 10, 2026 01:06 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).