CCPA Penalises 41 Restaurants Including Chaayos, Barbeque Nation Over Default Service Charge
The consumer watchdog imposed a Rs 50,000 penalty and ordered refunds against 41 outlets for levying service charges by default, directing billing-software changes to halt automatic collection under its July 2022 guidelines upheld by a March 2025 HC ruling.
What happened
CCPA acted against 41 restaurants including Chaayos and Barbeque Nation for levying service charges by default, imposing penalties and refund orders, and
Key facts
- 41 restaurants
- Rs 50,000 penalty
- July 4 2022 guidelines
- March 28 2025 HC ruling
Why this matters
The March 2025 HC ruling backing CCPA's July 2022 guidelines cements the legal end of automatic service-charge collection, a factor to price into diligence on restaurant-chain revenue quality and contingent liabilities.
What to watch
- Additional CCPA penalty lists naming more chains
- Any Supreme Court appeal or stay on the HC ruling
- Menu price hike announcements across major QSR/dine-in brands
- Consumer complaint volume trends post-guideline
- State-level food service billing directives echoing CCPA
- Audit POS/billing systems to remove default service-charge line items
- Reprice menus or introduce explicit optional-tip prompts
- Issue customer-facing communication on billing changes to protect brand trust
- Coordinate legal/regulatory response through NRAI
- Model margin impact of foregone service-charge revenue per outlet