Central Consumer Protection Authority (Indian Economy)
Central Consumer Protection Authority (Indian Economy)
Why In News:
The Central Consumer Protection Authority (CCPA) has initiated suo motu action against restaurants found imposing service charge as a default or mandatory add-on to bills, terming it an unfair trade practice.
Source: PIB Today, 19 July 2026 - 'CCPA action against restaurants levying mandatory service charge'
Service Charge versus GST
Service charge is a private charge levied by a restaurant, must be voluntary, requires clear communication to the consumer, and can be refused or negotiated by the customer.
GST (Goods and Services Tax) is a mandatory government tax, automatically added to the bill, and cannot be refused by the consumer since it is levied under law.
About the CCPA
The Central Consumer Protection Authority (CCPA) was established under Section 10 of the Consumer Protection Act, 2019.
It works to promote, protect and enforce the rights of consumers as a class, replacing the complaint driven redressal mechanism with a proactive regulator.
It functions under the Ministry of Consumer Affairs, Food and Public Distribution.
Composition:
The CCPA is headed by a Chief Commissioner.
It also includes two Commissioners -one responsible for goods-related matters and the other for service-related issues.
It has powers to recall goods, order refunds, impose penalties, and take action against misleading advertise ments and unfair trade practices, including issuing directions suo motu without needing an individual complaint.