Chandigarh Consumer Panel Orders Ice Cream Outlet To Pay 5000 For Forced Service Charge

, Jalandhar, to refund an illegally collected service charge and pay ₹5,000 as compensation and litigation costs to a Chandigarh resident.

The complaint was filed by Satinder Pal Singh Bhullar, who visited the outlet on February 23, 2025, and purchased ice cream. According to the complaint, he was billed ₹393, which included a 10 per cent service charge amounting to ₹35.75. Bhullar alleged that when he objected to the charge and sought its removal, the outlet’s manager refused to refund the amount and insisted that the entire bill be paid.

The commission observed that the central consumer protection authority (CCPA) guidelines issued on July 4, 2022, clearly state that hotels and restaurants cannot automatically levy service charges on customers. The guidelines further provide that such charges are voluntary and cannot be added to food bills by default.

While examining the bill produced by the complainant, the commission found that the service charge had indeed been levied. It held that compelling a customer to pay such a charge was contrary to the CCPA guidelines and amounted to both deficiency in service and an unfair trade practice.

Notably, the restaurant’s defence had been struck off earlier after it failed to file its written response within the prescribed period, leaving the complainant’s allegations unrebutted.

Allowing the complaint partly, the company was directed to refund the service charge of ₹35.75 along with interest at the rate of 9% per annum from the date of payment. It also ordered the outlet to pay a lump-sum compensation of ₹5,000 for mental harassment and litigation expenses.

The panel further directed that the order be complied with within 45 days, failing which the amount payable would attract penal interest at the rate of 12% per annum until realisation.