Gurgaon woman wins Rs 31,000 after restaurant refuses to waive Rs 401 charge

GURGAON: A dinner outing with friends in Gurgaon ended in a consumer dispute after a woman was charged an additional 10% service fee despite asking the restaurant to remove it. The Gurugram District Consumer Disputes Redressal Commission has directed the restaurant to pay her Rs 31,000, including compensation for mental harassment and litigation expenses. It has also ordered a refund of the Rs 401 service charge.

The dispute dates back to May 16, 2026, when the woman visited the restaurant with her friends for dinner. She alleged that the bill included a service charge of Rs 401, equivalent to 10% of the amount. She objected to the additional charge and asked the restaurant to remove it. However, the establishment allegedly refused, leaving her with no option but to pay the entire bill of Rs 4,811, including the disputed fee.

The woman later approached the consumer commission, arguing that the restaurant had violated the Central Consumer Protection Authority's (CCPA) guidelines on service charges. The restaurant did not appear before the commission despite being given an opportunity to respond. The proceedings were therefore conducted ex parte.

In its order, the commission referred to the CCPA's guidelines issued on July 4, 2022, which prohibit hotels and restaurants from automatically adding a service charge to bills. The guidelines state that establishments cannot collect such charges by default or under another name. They also make clear that payment of a service charge must remain voluntary, with consumers free to decide whether they want to pay it. The commission said the restaurant had disregarded these provisions by refusing to remove the charge despite the customer's objection. It held the establishment guilty of deficiency in service and adopting an unfair trade practice, observing that its actions amounted to a blatant violation of the CCPA guidelines.

Apart from ordering the restaurant to return the Rs 401 collected as service charge, the commission awarded the woman Rs 20,000 as compensation for mental harassment, pain and agony, and financial loss. It also directed the restaurant to pay Rs 11,000 towards litigation expenses, taking the total amount payable to Rs 31,401, including the refund.