Lawstreet Journal

CCI Dismisses Complaint against Swiggy Alleging Unfair Prices Charged by the Company

Lawstreet Journal 24 Jun 2020 5:23pm

Image courtesy: Lawstreet Journal Business CCI Dismisses Complaint against Swiggy Alleging Unfair Prices Charged by the Company

The Competition Commission of India disposed of a complaint filed against the online food delivery giant Swiggy that alleged that the company charges unfair prices from its customers. It was filed by advocates Prachi Agrawal and Tushar Sharma under Section 19(1) (a) of the Competition Act, 2002 against Bundl Technologies Pvt. Ltd. (a.k.a. Swiggy) alleging a contravention of Section 4 of the Act.

Relying on the reports of various data intelligence platforms, the informants stated that Swiggy tops the market share, and its website also claims it to be the leading food ordering and delivery platform in India.

The complainants alleged that the rates charged by the company for its services are much higher than the rates offered by the respective restaurants in offline delivery mechanisms. According to the informants, Swiggy charges a commission on the total bill amount, which is inclusive of GST, from its partner restaurants. Also, it charges from its customers a delivery fee which ranges from Rs 20 to 100 and can be even more in times of high demand, special occasions, and rains and on midnight deliveries.

The informants also stated that the customers are unaware of the offline prices offered at the restaurant, and hence are rendered incapable of comparing the two. “The customers are blinded and made to believe that only delivery charges are applicable and are completely unaware of the inflated prices of the OP which are unreasonable and varyingly apply to various dishes,” the order read. In addition to this, the informants prayed to… Continue Reading...

Tagged: Swiggy   Competition Commission of India  
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