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CCPA Fines Chaayos Rs 50,000 for Forcing Service Charge on Customers

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The Central Consumer Protection Authority (CCPA) has imposed a Rs 50,000 fine on café chain Chaayos for automatically adding service charges to customer bills. The consumer watchdog ruled that restaurants cannot compel customers to pay what are classified as voluntary tips. As part of the order, Chaayos must refund the service charge amount to the complainant who raised the grievance. The company is also directed to remove default service charges from all its billing systems going forward. The ruling reinforces the legal position that service charges in restaurants are optional, not mandatory.

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CCPA Fines Chaayos Rs 50,000 for Forcing Service Charge on Customers · ShortSingh