Patna Café Fined ₹30,000 for Automatically Adding Service Charge to Customer Bills

The Central Consumer Protection Authority (CCPA) has imposed a ₹30,000 penalty on Cafe Blue Bottle in Patna for violating consumer guidelines by automatically adding a service charge to customer bills. The café has also been directed to refund the amount to the complainant and immediately discontinue the practice.

Action Taken After Delhi High Court Order

The action follows the Delhi High Court’s order dated March 28, which made it clear that all restaurants must comply with the service-charge guidelines issued by the CCPA. The court had also stated that any violation would invite strict proceedings against the concerned establishments.

CCPA Guidelines: Service Charge Not Mandatory

The CCPA’s July 4, 2022 guidelines prohibit restaurants and hotels from:

• Automatically adding service charge to bills
• Including service charge along with food cost or GST
• Charging service fee without prior and explicit consent of the customer

Service charge, as per the rules, is completely voluntary, and customers must be informed beforehand.

Complaint, Investigation, and Penalty

The issue came to light after Ravi Nandan Kumar filed a complaint with the National Consumer Helpline in April. He reported that Cafe Blue Bottle had added ₹801 as service charge in addition to GST.

The investigation revealed that:

• The café’s billing software was configured to automatically add service charge to every bill.
• The restaurant claimed it was “optional” and removed it upon request, but could not produce evidence showing in how many cases the charge was actually removed.
• Although the café offered a refund of ₹591, it issued a credit note instead of returning the money, which the CCPA deemed an improper refund method.

Because the café failed to provide satisfactory records or justification, the CCPA concluded that the practice was non-compliant and imposed the penalty.