The Central Consumer Protection Authority (CCPA) has fined Shangri-La Eros hotel in New Delhi ₹1 lakh for automatically adding a 10% service charge to food bills at its Mister Chai restaurant. The authority held that the practice was unfair because customers were required to opt out after the charge had already been added, rather than giving affirmative consent before payment.

The case highlights how seemingly small billing practices can damage trust in premium hospitality brands. Guests may accept menu prices, but discovering an additional 10% charge at the payment stage can create the impression of a hidden cost or misleading billing—even when the charge is mentioned on the menu.

The CCPA order, passed by chief commissioner Nidhi Khare and commissioner Anupam Mishra, noted that the hotel had informed the authority in late September that it would discontinue the practice from 1 October. The hotel had argued that the service charge was discretionary and optional, but the authority rejected the opt-out structure as insufficient to establish genuine customer consent.

The complaint was supported by invoices showing a service charge of ₹435 on a subtotal of ₹4,350 and ₹125 on a subtotal of ₹1,250. GST was subsequently levied on the higher amounts after the service charge had been added.

The CCPA held that adding the charge automatically and requiring customers to request its removal placed the burden on guests. In an upscale hotel, questioning a bill or asking staff to remove a charge can also create social pressure, making the payment appear voluntary in theory but difficult to refuse in practice.

Why Automatic Service Charges Hurt Hotel Trust

Luxury hotels sell more than food and accommodation. Their brand promise is built around predictability, care and transparency. An unexpected charge at checkout can undermine that promise and make guests feel that the business is prioritising revenue extraction over the overall experience.

The impact can extend beyond a single visit. Guests may share bills, post reviews or discuss the experience on social media. Even if a charge is later refunded, the impression that consent was not obtained upfront may remain.

The addition of GST on the service charge can amplify the concern. In the invoices cited in the order, the hotel first added 10% to the food subtotal and then calculated GST on the inflated amount. Customers may view this as compounding an unauthorised charge.

The CCPA also held that a refund after payment did not cure the violation. Consent, it said, must be free, prior and informed—not obtained only after the customer has noticed the charge and challenged it.

How Technology Can Prevent Unauthorised Charges

Technology can help hotels make the optional nature of any service contribution clear and ensure that consent is recorded before payment.

POS billing systems should remove service charges from default bill templates. If a guest chooses to make a voluntary contribution, staff should select a separate option only after receiving approval.

Digital and QR menus can display food prices, taxes and any optional contribution before an order is placed. At checkout, tablets or mobile payment screens can ask: “Would you like to add a voluntary service contribution? Yes / No / Custom amount.”

E-bills and payment links should show separate lines for food, GST and any voluntary contribution. A bundled total that hides the charge makes it harder for guests to understand what they are paying for.

Hotels can also use customer relationship management and feedback tools to send receipts after a visit and ask whether the billing process was clear. Recurring complaints can then be identified and addressed early.

AI-powered compliance checks can scan sample bills for unauthorised line items, renamed charges or GST applied to service charges. Staff-training applications can use short bill simulations and scripts to help employees explain optional contributions without pressuring guests.

The central rule is simple: the default should be “no service charge”. Any contribution should require an affirmative choice by the customer. CCPA guidelines prohibit automatic addition, collection under another name, coercion, entry restrictions and GST on a service charge added to the food bill.

How Guests Can Protect Themselves

Guests can take several steps to protect themselves when dining at hotels and restaurants:

Check the menu before ordering. Look for terms such as “service charge”, “staff contribution”, “voluntary contribution” or “applicable charges”.

Ask before ordering: “Is any service charge added automatically? Can I choose not to pay it?”

Review the bill line by line before paying. Check whether a 5% or 10% charge has been added and whether GST has been calculated on it.

Do not feel pressured to pay. A service charge or tip is voluntary, and refusing it cannot be used to deny entry or service under the CCPA guidelines.

Ask for a revised bill rather than merely requesting a refund. The charge and any GST calculated on it should be removed before payment.

Keep evidence by photographing the menu, bill, payment screen and any written communication with the restaurant or hotel.

Guests can complain through official channels, including the National Consumer Helpline at 1915, the NCH app or the e-Daakhil portal. Reviews should mention the specific billing issue, date and resolution without making unverified accusations.

The Shangri-La Eros case serves as a reminder that transparent billing is central to customer trust. For hotels and restaurants, obtaining clear consent before adding any optional contribution is not only a compliance requirement but also an important part of protecting the guest experience and the brand's reputation.

India’s apparel industry is approaching the festive season with optimism, but rising input costs and growing competition from Chinese garment imports raise a critical question: will stronger consumer demand translate into sustainable growth for domestic manufacturers?

According to a September 2026 survey by the Clothing Manufacturers Association of India (CMAI), 52% of respondents expect higher festive sales than last year, while 30% anticipate sales remaining at similar levels. Fewer than 20% expect a decline.

The outlook appears encouraging, but sales expectations alone do not establish whether manufacturers are becoming more profitable.

The Price of Festive Optimism

Rising production costs remain a significant concern. The CMAI survey found that approximately 54% of respondents are absorbing higher input costs by reducing their margins, while only around 35% have increased prices.

This creates a difficult equation for domestic manufacturers. Raising prices risks making products less attractive to price-conscious consumers, while absorbing additional costs leaves businesses with less room to invest, expand production or withstand market fluctuations.

The challenge becomes more pronounced when manufacturers compete against imported garments that may offer attractive prices and a wide variety of designs.

Imports Add to the Pressure

The concern is not merely theoretical. According to the South India Hosiery Manufacturers Association, imports of cotton ready-made garments from China rose to ₹8,508.64 crore during April–August 2025, from ₹8,263 crore in the corresponding period a year earlier, as reported by Textile Value Chain.

Broader trade data also highlights China's position in the supply chain. The Confederation of Indian Textile Industry reports that China accounted for 43.2% of India's textile and apparel imports in 2023. However, this figure covers a wider range of products, including textile materials and fabrics, not just finished garments. 

For Indian producers, particularly manufacturers in established clusters such as Tiruppur, the concern is whether imported apparel will capture demand that domestic factories could otherwise serve. Yet imports also give retailers access to different products and price points, making the issue more complex than a straightforward domestic-versus-foreign contest.

Beyond Festive Sales

India's manufacturers need more than a seasonal demand boost. Better production efficiency, competitive pricing, design differentiation and stronger supply chains will be essential to sustaining growth. Policymakers and industry bodies must also assess import trends using product-specific data before drawing conclusions about their impact on domestic production.

Ultimately, the CMAI survey offers a positive demand signal, not proof of an industry-wide recovery. If manufacturers must sacrifice margins to compete on price while facing imported alternatives, higher festive sales may not deliver the financial gains they need. The more important measure of success will be whether domestic businesses can turn seasonal demand into stronger profitability and long-term competitiveness.

Chocolate prices remain high across global markets, even as cocoa prices have eased from their record levels. The reason goes beyond the price of cocoa beans. Manufacturers are still dealing with expensive raw material contracts, rising production costs and uncertain future supplies, while consumers are becoming more cautious about how much they spend on chocolate.

The situation comes at an important time for the confectionery industry, with Halloween, Thanksgiving, Christmas and New Year driving demand for seasonal chocolates, gift boxes and festive treats. For manufacturers and chocolatiers, the challenge is to manage costs without pricing customers out of the market.

West African Supply Concerns Keep Cocoa Markets Uncertain

The cocoa crisis began with poor harvests in West Africa, where adverse weather and crop diseases affected production in major growing countries, including Ivory Coast and Ghana. The International Cocoa Organization (ICCO) estimated a global cocoa supply deficit of 489,000 tonnes for the 2023/24 season, reflecting the scale of the shortage. The supply shock pushed cocoa prices to unprecedented levels during the 2024–25 market crisis.

Although production has improved since then, fresh weather concerns are bringing uncertainty back to the market. A Reuters report published in October 2026 said Ivory Coast's main cocoa crop for the 2026/27 season could decline by around 17% to approximately 1.25 million tonnes, compared with 1.5 million tonnes in the previous season. Farmers and industry sources linked the outlook to dry conditions associated with El Niño and reduced use of fertilisers and pesticides.

The price movement reflects these concerns. According to the ICCO, its daily cocoa price stood at approximately US$5,901 per tonne on 20 October 2026. Although this is substantially below the market's record highs, the risk of another supply shortfall continues to influence expectations.

Why Retail Chocolate Prices Have Not Fallen

A decline in cocoa prices does not immediately translate into cheaper chocolate. Manufacturers often use forward contracts and hedging arrangements to manage ingredient costs, meaning the cocoa they process today may have been purchased when market prices were much higher. The timing of inventory consumption also delays the impact of lower commodity prices on production costs.

Mondelez International, the company behind brands including Cadbury and Oreo, said in its 2026 reporting that changes in cocoa market prices do not immediately affect its cost of goods sold because of hedging arrangements and the timing of inventory use. It also identified packaging, energy, transportation, labour and other ingredient costs as additional pressures on its business.

Retail prices therefore continue to reflect earlier supply pressures, alongside the broader cost of manufacturing, packaging and distributing chocolate. Companies also need to protect their margins while balancing affordability and customer demand.

The impact is visible in consumer markets. Chocolate prices across the European Union rose by 17.9% in 2025, the highest increase among the food categories covered in Eurostat's figures, according to Euronews. In the United States, the Bureau of Labor Statistics reported that candy and chewing gum prices were 8.1% higher year-on-year in August 2026, showing continued pressure across the wider confectionery category.

European Chocolatiers Face a Difficult Balance

For European chocolatiers, particularly those producing premium and artisan chocolates, the combination of expensive ingredients and price-sensitive customers has created a difficult business environment.

Smaller producers often work with premium couverture chocolate and higher cocoa content, leaving fewer opportunities to absorb cost increases without changing product prices. Raising prices can protect margins but may discourage purchases, while keeping prices unchanged can put pressure on profitability.

Large manufacturers are facing similar challenges. Lindt & Sprüngli raised its selling prices by 11.8% in the first half of 2026, but its volume and product mix declined by 7.5% during the period. In September, the company reduced its full-year organic sales growth forecast to 0–2%, from its earlier expectation of 4–6%, citing subdued consumer sentiment, greater price sensitivity and weaker demand in European markets.

These figures highlight the limits of repeatedly increasing prices. While higher selling prices can help offset expensive inputs, consumers may respond by buying less, choosing smaller products or switching to lower-priced alternatives.

Manufacturers and retailers may also adjust pack sizes, the composition of seasonal assortments, product recipes and promotional strategies. Such changes can help manage costs, although they may also alter the size, variety or ingredients of the products customers receive.

What to Expect During the Festive Season

The coming festive period will test the industry's ability to balance prices and demand. Chocolate is an important part of seasonal gifting, baking and entertaining, making it more than an everyday snack for many consumers.

Premium chocolate boxes, advent calendars, seasonal hampers and assorted gift packs could face particular pressure as brands try to maintain their appeal without pushing prices beyond what customers are willing to pay. Some shoppers may opt for smaller gift boxes, while others could choose biscuits, caramel-based treats, mixed confectionery or more affordable chocolate products.

Retailers and manufacturers will also need to decide how much to rely on discounts and promotional offers. While promotions can encourage purchases, businesses must consider the additional pressure they place on margins, especially when input costs remain uncertain.

The festive outlook will depend partly on how cocoa supplies develop during the current growing season. A stronger harvest could help ease market concerns over time, but further weather-related disruption in West Africa could renew upward pressure on cocoa prices just as seasonal demand peaks.

For now, chocolate manufacturers face a market in which lower cocoa prices have not yet translated into equivalent savings for consumers. The combination of earlier high-cost purchases, other production expenses and uncertain future supplies continues to shape retail pricing. As the festive season approaches, the industry's challenge is not simply to secure cocoa at a lower price, but to make chocolate affordable enough to sustain consumer demand while maintaining product quality and business profitability.