Delhi High Court order on mandatory collection of service charge by restaurants

On March 25, 2023, the Department of Consumer Affairs issued an update regarding Delhi High Court's order on mandatory collection of service charge by restaurants. The CCPA has the mandate under the CPA, 2019 to curb unfair practices in the overall interest of consumers and protect their rights. The practice of collecting service charge on a mandatory basis is a sovereign function, but it cannot be used as an excuse for establishments to collect money from customers without transparency.