In March 2025, which High Court passed a decision to uphold the Central Consumer Protection Authority (CCPA) guidelines that prohibited hotels and restaurants from levying service charge?

Correct option is D

The correct answer is (d) Delhi High Court
Explanation:
• In March 2025, the Delhi High Court upheld the Central Consumer Protection Authority (CCPA) guidelines which prohibit the automatic or default levying of service charge by hotels and restaurants.
• The court declared such a practice as an unfair trade practice under the Consumer Protection Act, 2019.
• The ruling came in response to a challenge filed by the National Restaurant Association of India (NRAI) and the Federation of Hotels and Restaurant Associations of India (FHRAI).
• The court dismissed the plea and reinforced consumer rights in billing practices.
• The decision highlighted that:
– Service charge must be voluntary, not mandatory.
– No denial of service should occur if a consumer refuses to pay it.
– No GST can be levied on service charge amounts.
Information Booster:
• The CCPA guidelines were introduced to ensure transparent pricing and protect consumers from exploitative billing.
• The Consumer Protection Act, 2019, empowers authorities to take action against unfair trade practices, including coercive service charges.
Additional Knowledge:
Punjab and Haryana High Court (Option a)
• Has ruled on various administrative and environmental issues but not on this matter in 2025.
Allahabad High Court (Option b)
• Not involved in the 2025 litigation regarding service charge guidelines.
Patna High Court (Option c)
• No relevant judgment related to CCPA service charge guidelines was passed in March 2025.