India’s Central Consumer Protection Authority (CCPA) is poised to direct leading food delivery platforms Zomato and Swiggy to amend their order cancellation and refund policies. This move comes in response to mounting consumer grievances over hefty cancellation charges and service delays.
🚨 High Cancellation Fees Under Scrutiny
Currently, customers may incur cancellation fees up to 90% of the order value, even when cancellations result from issues like delayed deliveries or unassigned delivery agents. The CCPA contends that such charges unfairly penalize consumers for problems originating from the platforms themselves. An official stated, “Customers should not be penalized for deficiencies of the platform. They need to change their cancellation policies” .
📈 Surge in Consumer Complaints
The CCPA’s impending directive follows a suo motu investigation initiated in October 2024 after a significant increase in complaints filed with the National Consumer Helpline (NCH). Swiggy faced 10,590 complaints, including nearly 4,000 related to service issues and 912 concerning refunds. Zomato received 7,938 complaints, with a substantial number pertaining to delivery problems and cancellations
🛠️ Proposed Reforms
The CCPA is expected to recommend that Zomato and Swiggy:
- Reduce or eliminate steep cancellation charges, especially when delays are due to platform inefficiencies.
- Ensure prompt refunds for canceled orders.
- Implement software changes to facilitate these policy adjustments .
These reforms aim to foster a more consumer-friendly environment in India’s burgeoning food delivery sector.
🏛️ Platforms’ Perspective
Zomato and Swiggy argue that cancellations, particularly after food preparation has commenced, result in sunk costs, as they are obligated to compensate restaurant partners regardless of order completion. However, the CCPA maintains that consumers should not bear the brunt of such operational challenges, especially when delays exceed the estimated delivery time .
🍽️ Accountability for Food Quality
Beyond cancellation policies, the CCPA is also addressing concerns over food quality. Despite platforms’ claims of merely being aggregators, legal experts assert that Zomato and Swiggy are accountable under food safety regulations. In instances of substandard or unhealthy food deliveries, the platforms may be held responsible alongside the restaurants .
🔮 Looking Ahead
The CCPA’s forthcoming directives could significantly impact the operational policies of Zomato and Swiggy, setting new standards for consumer rights and service accountability in India’s online food delivery industry. As the situation evolves, both companies may need to balance operational costs with enhanced consumer protection measures.Storyboard18
