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    <title>2025 (4) TMI 65 - DELHI HIGH COURT</title>
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    <description>Delhi HC upheld CCPA guidelines prohibiting mandatory service charges by restaurants under Consumer Protection Act, 2019. Court ruled that compulsory service charges constitute unfair trade practice and create unenforceable contracts due to consumers&#039; limited bargaining power against establishments. The CCPA&#039;s statutory authority under CPA, 2019 validates these guidelines as mandatory regulations, not mere advisory instructions. Restaurants cannot levy service charges by default through menu display alone. Consumers must retain discretion to decide on service charge payment. The guidelines serve legitimate consumer protection interests and are constitutionally proportionate. Petition dismissed.</description>
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    <pubDate>Fri, 28 Mar 2025 00:00:00 +0530</pubDate>
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      <title>2025 (4) TMI 65 - DELHI HIGH COURT</title>
      <link>https://www.taxtmi.com/caselaws?id=768151</link>
      <description>Delhi HC upheld CCPA guidelines prohibiting mandatory service charges by restaurants under Consumer Protection Act, 2019. Court ruled that compulsory service charges constitute unfair trade practice and create unenforceable contracts due to consumers&#039; limited bargaining power against establishments. The CCPA&#039;s statutory authority under CPA, 2019 validates these guidelines as mandatory regulations, not mere advisory instructions. Restaurants cannot levy service charges by default through menu display alone. Consumers must retain discretion to decide on service charge payment. The guidelines serve legitimate consumer protection interests and are constitutionally proportionate. Petition dismissed.</description>
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      <pubDate>Fri, 28 Mar 2025 00:00:00 +0530</pubDate>
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