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HC to hear appeals on service charges on May 9
The Morning Standard
|April 30, 2025
THE Delhi High Court will hear two appeals on May 9 against a previous court decision that supported the Central Consumer Protection Authority (CCPA) guidelines.
These guidelines ban the automatic addition of service charges to restaurant bills.
The National Restaurant Association of India (NRAI) and the Federation of Hotel and Restaurant Associations of India (FHRAI) had challenged this decision. The appeals were listed before a Division Bench, comprising Chief Justice Devendra Upadhyay and Justice Tushar Rao Gedela. However, the hearing was postponed due to technical issues with the virtual hearing system, and it will now take place on May 9.
In July 2022, the CCPA issued guidelines saying restaurants cannot add service charges to bills without asking customers. This followed many complaints from diners about service charges of 5-20% being added automatically.
The NRAI and FHRAI claimed that service charges have been a common industry practice for over 80 years, based on labour agreements. But the single-judge court found no proof that the service charge directly benefits workers.
This story is from the April 30, 2025 edition of The Morning Standard.
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