Man wins Rs 1 lakh consumer payout after restaurant ‘hikes’ per head buffet price

A Delhi District Consumer Commission was hearing a complaint alleging deficiency in service and unfair trade practice over a buffet price and service charge levied by a restaurant booked through an online dining platform.

Delhi Consumer Commission Restaurant Online Platform Dining Service Charge Fine DineThe commission found that the restaurant’s menu did not disclose the service charge, while the bill separately listed it as a “Service Charge”. (Image generated using AI)

A Delhi Consumer Commission has directed a restaurant and an online platform to pay Rs 1 lakh to a customer after finding that a buffet booked through the platform was billed substantially higher than the price displayed at the time of booking. The commission also ordered the restaurant to refund Rs 3,988 with along with Rs 254 towards the service charge.

The District Consumer Disputes Redressal Commission-I, North District, Delhi president Divya Jyoti Jaipuriar and members Ashwani Kumar Mehta and Harpreet Kaur Charya were hearing Praveen Kumar Singh’s complaint over a table booked for April 7, 2024.

“A representation of price made to a consumer at the pre-booking stage … creates a reasonable expectation that the actual billing will not differ materially from that representation,” the commission said on September 21. It found the difference between the displayed and billed price was approximately 40-47 per cent and held it material.

The complainant booked a table for 10 people, while another booking for four was made through his wife’s account. The listing showed “cost for two” at Rs 1,500, indicating Rs 750 per person. After the meal, however, the restaurant charged Rs 1,050 for a vegetarian buffet and Rs 1,100 for a non-vegetarian buffet.

Commission questions online price

The online platform argued it was an intermediary and that the “cost for two” figure was an average or estimated amount. It said customers could access the detailed menu and exact prices before booking. The commission found no indication on the listing that the figure was merely an estimate or non-binding. It also noted that the platform’s terms contained no such disclaimer. The platform had access to the restaurant’s detailed menu with weekend pricing, yet the lower figure continued without a prominent disclaimer.

The commission held both responsible for the accuracy of information shown to consumers. It also rejected the platform’s reliance on intermediary protection under the Information Technology Act, noting that it had not shown a mechanism to reconcile the displayed price with actual billing.

Service charge also disputed

The complaint also concerned a 10 per cent service charge on beverages. The complainant objected, but eventually paid it. The commission examined the legal position applicable on April 7, 2024, noting that interim directions required specified disclosure and, in relevant circumstances, the term “Staff Contribution” instead of “Service Charge”.

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The commission found that the restaurant’s menu did not disclose any service charge or staff contribution. The bill also described the levy as “Service Charge”. It consequently held that the levy constituted a deficiency in service and an unfair trade practice. The commission also referred to the Delhi High Court’s March 28, 2025 judgment, holding that service charges and tips are voluntary and cannot be made compulsory on food bills.

The commission directed the restaurant to refund Rs 3,988 towards the excess amount charged over the price represented on the platform, with 9 per cent annual interest from April 7, 2024. It also ordered a Rs 254 refund towards the service charge, with 9 per cent annual interest from the same date. The platform and restaurant were directed to jointly and severally pay Rs 1 lakh towards mental agony, harassment, inconvenience and litigation costs within four weeks.

Takeaway

If a restaurant or booking platform shows a price before you book, consumers should check that the final bill matches the price representation and question any unexplained difference.

For consumer-related grievances, individuals may contact the consumer helpline in their respective states (Delhi: 1800-11-4000) or call the National Consumer Helpline at 1915 for assistance.

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Vineet Upadhyay is an Assistant Editor with The Indian Express (Digital), where he leads specialized coverage of the Indian judicial system. Expertise Specialized Legal Authority: Vineet has spent the better part of his career analyzing the intricacies of the law. His expertise lies in "demystifying" judgments from the Supreme Court of India, various High Courts, and District Courts. His reporting covers a vast spectrum of legal issues, including: Constitutional & Civil Rights: Reporting on landmark rulings regarding privacy, equality, and state accountability. Criminal Justice & Enforcement: Detailed coverage of high-profile cases involving the Enforcement Directorate (ED), NIA, and POCSO matters. Consumer Rights & Environmental Law: Authoritative pieces on medical negligence compensation, environmental protection (such as the "living person" status of rivers), and labor rights. Over a Decade of Professional Experience: Prior to joining The Indian Express, he served as a Principal Correspondent/Legal Reporter for The Times of India and held significant roles at The New Indian Express. His tenure has seen him report from critical legal hubs, including Delhi and Uttarakhand. ... Read More

 

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