The Central Consumer Protection Authority (CCPA) has directed Barbeque Nation Hospitality Limited to stop charging service charges at its restaurants.

The direction came after the CCPA took suo motu notice of a complaint filed on the National Consumer Helpline (NCH). The complaint alleged that Barbeque Nation had added a service charge to a customer’s bill in January 2025, along with CGST and SGST.

The customer had objected to the service charge of ₹335 and asked for a refund. Initially, the restaurant offered to adjust the amount against a future visit. However, the amount was later refunded directly on April 16, 2025 through the NCH system, and the complaint was officially closed on April 22, 2025.

The CCPA noted that the service charge was levied on January 18, 2025, when an interim order of the Delhi High Court was in force. However, after the High Court delivered its final judgment on March 28, 2025 in National Restaurant Association of India v. Union of India, Barbeque Nation stopped charging service fees altogether. The restaurant chain also assured that any service charge collected earlier would be refunded if customers asked for it.

In its judgment, the Delhi High Court upheld the CCPA’s guidelines and clearly ruled that a service charge or tip is voluntary in nature. The Court said it cannot be imposed on customers or automatically added to a bill.

The CCPA further observed that, in the facts of this case, Barbeque Nation’s conduct did not amount to an unfair trade practice under the Consumer Protection Act, 2019.

Accordingly, the Authority directed the restaurant chain to discontinue the practice of levying service charges, if any, at its outlets and closed the proceedings under Sections 20 and 21 of the Consumer Protection Act, 2019.

Barbeque Nation Hospitality Limited was represented by its Legal Head, Rashmi Ranjan Sahoo.