Charged Rs 116 service charge, Gurugram restaurant now to pay customer Rs 31,000

A Gurgaon restaurant has been ordered to refund Rs 31,000 to a customer after charging a service fee of Rs 116.30 unilaterally. The Gurugram District Consumer Commission found the restaurant guilty of providing deficient services and adopting an unfair trade practice. President Sanjeev Jindal, member Jyoti Siwach and Khushwinder Kaur jointly held the restaurant accountable for violating guidelines issued by the Central Consumer Protection Authority (CCPA) under Section 18(2)(1) of the Act.

The complainant claimed he was surprised to see the unannounced service charge added to his bill, which amounted to 10% of the Rs 1,163 total. The commission examined the bill and found the restaurant had indeed levied the charge, which is prohibited under the CCPA guidelines. The guidelines state that service charges cannot be collected by default or under any other name, and must be optional for customers to pay.

The commission directed the restaurant to refund the service charge and pay Rs 20,000 in compensation for mental and economic harm caused to the customer, plus Rs 11,000 for litigation expenses.