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Consumer Forum Orders Restaurant to Pay ₹15,000 Compensation for Imposing Service Charge Without Consent

Jalandhar Commission Terms Mandatory Service Charge an Unfair Trade Practice, Orders Refund

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June 18, 2026
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Jalandhar, Jun 18 (JKNS): The District Consumer Disputes Redressal Commission, Jalandhar, has directed a restaurant to pay ₹15,000 as compensation to a lawyer after finding it guilty of imposing a service charge on a food bill without the customer’s consent.

According to details available with news agency JKNS, the Commission held that levying a service charge without prior approval from the consumer amounts to an unfair trade practice and ordered the restaurant to refund the amount collected under the service charge besides paying compensation for mental harassment caused to the complainant.

The order was passed by a bench comprising President Harveen Bhardwaj and Members Jyotsna and Jaswant Singh Dhillon while deciding a complaint filed by advocate Sanjeev Duggal.

The complaint related to a restaurant visit in November 2023 during which the establishment had added a service charge of ₹151 to the bill.

In its judgment dated June 4, the consumer forum observed that the restaurant failed to obtain the customer’s consent before adding the service charge, thereby violating consumer rights.

The Commission noted that the restaurant had specifically charged a service fee and not a staff contribution, making it clear that the amount was imposed as an additional charge on the consumer without authorization.

“It is proved that the restaurant charged service charges without obtaining consent from the consumer, which constitutes an unfair trade practice,” the Commission observed, while holding that the complainant was entitled to a refund of the amount along with compensation for inconvenience and mental harassment.

The ruling is being viewed as a significant reminder that service charges cannot be mandatorily imposed on customers and must remain at the discretion of consumers.

The Commission accordingly directed the restaurant to refund the service charge amount and pay ₹15,000 as compensation to the complainant for the unfair trade practice and the distress caused. (JKNS)

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