
Why your Bottle costs Rs. 100/- Beyond the Menu ? The National Restaurant Association of India (NRAI) and the Federation of Hotels and Restaurant Association of India (FHRAI) in a legal battle over restaurant service charges issue came up when Central Consumer Protection Authority (CCPA) issued guidelines in 2022 to prevent hotels and restaurants from automatically adding a service charge to protect the consumer from what may be considered unfair trade practice. The ongoing legal proceedings, including a recent hearing at the Delhi High Court, highlighted a fundamental conflict between a consumer’s right to transparent pricing and a business’s right to set its own charges for the dining experience. The Court’s critical stance on what it calls “Double Charging” – once through inflated prices and again through service charge - underscores the complexity of this issue and its potential to reshape the restaurant industry’s business model. Main Arguments of the Bench A restaurant selling a...