Central Consumer Protection Authority (CCPA) has imposed a penalty of Rs 1 lakh on Shangri-La Eros, New Delhi, for automatically adding a 10% service charge to restaurant bills, holding that describing the levy as optional on the menu does not make the practice lawful.
In its October 22, 2026 order, the consumer regulator found that the hotel continued levying the charge despite guidelines prohibiting restaurants from adding service charges automatically or by default. The authority said customers must be free to decide whether to leave a tip, without having to request the removal of a charge already included in their bills.
