New Delhi, Aug. 5 -- The government on Wednesday warned that action will be taken against all restaurants and hotels across India that automatically add a service charge to customers' bills, following a surge in complaints. The Department of Consumer Affairs said the practice is unlawful under Delhi High Court orders and Central Consumer Protection Authority (CCPA) guidelines, and clarified that tipping remains voluntary.

In a video shared by PTI on X, Nidhi Khare, Secretary of the Department of Consumer Affairs, said the department had received numerous consumer reports on the issue. She cited the Delhi High Court's ruling that held that restaurants and hotels levying mandatory service charges will face action. Khare stressed that the p...