HOTELS/ RESTAURANTS CAN'T ADD 'SERVICE CHARGE' AUTOMATICALLY OR BY DEFAULT IN BILL: CENTRAL CONSUMER PROTECTION AUTHORITY The Central Consumer Protection Authority (CCPA) has issued an order barring Hotels and restaurants from levying service charges automatically or by default on food bills. The Central Consumer Protection Authority (CCPA) has issued guidelines for preventing unfair trade practices and violations of consumer rights with regard to levying of service charges in hotels and restaurants. (i) No hotel or restaurant shall add service charge automatically or by default in the bill. (ii) Service charge shall not be collected from consumers by any other name. (iii) No hotel or restaurant shall force a consumer to pay service charge and shall clearly inform the consumer that service charge is voluntary, optional, and at the consumer's discretion. (iv) No restriction on entry or provision of services based on collection of service charge shall be imposed on consumers. (v) Service charge shall not be collected by adding it along with the food bill and levying GST on the total amount. Reddy & amp; Reddy is renowned for its experience in litigation. We have successfully represented our clients in civil, commercial and criminal litigation proceedings before the relevant Indian courts.