CCPA likely to direct Zomato, Swiggy to revise cancellation, refund policy

The consumer watchdog took suo-motu cognisance of unfair practices in 2024 and is now likely to direct Zomato and Swiggy to revise refund and cancellation policies

The Central Consumer Protection Authority (CCPA) is likely to direct food delivery platforms Zomato and Swiggy to revise their order cancellation and refund policies, Moneycontrol reported, citing people familiar with the matter. The move comes amid an ongoing investigation into alleged unfair trade practices. 

The authority may also ask both platforms to update their systems to prevent excessive cancellation charges and ensure timely refunds for cancelled orders, the report added.

 

The consumer rights body had taken suo motu cognisance of alleged unfair practices related to refunds, delivery delays, and service deficiencies in October 2024.

 

Excessive charges and delays under scrutiny 

A person familiar with the probe told Moneycontrol that the platforms sometimes impose cancellation charges as high as 90 per cent of the order value. They further highlighted frequent delivery delays caused by issues such as unavailability of delivery agents or delays in reaching the pickup point.

 

“The actual delivery time often exceeds the ETA shown while placing the order. Customers should not be penalised for deficiencies of the platform. They need to change their cancellation policies,” the person said. 

 

Complaint spike triggered investigation 

The probe was launched after the National Consumer Helpline (NCH) received a significant number of complaints related to refund denials and service deficiencies.

 

Swiggy faced 10,590 complaints, including nearly 4,000 linked to service issues and 912 concerning non-receipt of refunds.

 

Zomato received 7,938 complaints, also largely focused on delivery issues and cancellations.

 

Platforms’ argument and CCPA’s likely stand 

Both Zomato and Swiggy argue that refunds become difficult once the restaurant has prepared the food, as the order amount must still be paid in full.

 

However, the official cited earlier said:

 

“In cases where the orders are delayed beyond the promised ETA, customers should be entitled to full refunds.”

 

The CCPA is expected to issue formal directions soon, potentially setting a new standard for cancellation and refund norms across India’s food delivery sector.