In re Ranisa Restaurant (CCPA Delhi)
Summary: The Central Consumer Protection Authority (CCPA) took suo motu cognizance of a complaint received from Ms. Joyshree Saikia concerning Ranisa Restaurant, Connaught Place, New Delhi. The complaint alleged that during a visit on 02.06.2025, the Restaurant insisted upon a 5% service charge despite an express request for its removal and also alleged that a human hair was found in Rasgulla served to the complainant’s cousin sister. CCPA conducted a preliminary inquiry under Sections 18(2) and 19 of the Consumer Protection Act, 2019 and thereafter directed the Director General (Investigation) to investigate. The Investigation Report found that the invoice contained an automatically included 5% service charge and treated the billing practice as involving violations of consumer rights, unfair contract provisions and unfair trade practice provisions. The Restaurant submitted that service charge was voluntary and disclosed to consumers, but during the proceedings admitted that it continued to levy service charge until receipt of the CCPA notice. The Restaurant subsequently discontinued the levy, furnished an undertaking and refunded Rs. 70/- to the complainant. CCPA found that requiring consumers to seek removal of an automatically included charge could not constitute voluntary consent and that subsequent corrective measures did not absolve the Restaurant of the contravention. CCPA directed the Restaurant to discontinue and refrain from automatically levying service charge under any nomenclature, modify its software-generated billing system, remain bound by its undertaking and pay a penalty of Rs. 10,000/-. A compliance report was directed to be submitted within 15 days from receipt of the order.
