In a move prompted by a sharp rise in consumer complaints, the Central Consumer Protection Authority (CCPA) is preparing to issue directions to Zomato and Swiggy to overhaul their cancellation and refund mechanisms. The directive, expected to be issued soon, follows a suo motu investigation initiated by the regulator in October 2024.

Officials aware of the development stated that the CCPA will ask both platforms to alter their systems to prevent customers from bearing the brunt of high cancellation charges—some reported to be as high as 90% of the order value—and to ensure timely refunds, particularly when service lapses occur from the platform’s end.

Mounting Complaints, Mounting Pressure

According to data from the National Consumer Helpline, Swiggy received 10,590 complaints in 2024, of which nearly 4,000 were to delivery delays or poor service, while more than 900 involved refund issues. Zomato followed closely with 7,938 complaints.

Officials argue that if delays stem from operational issues—such as not assigning a delivery agent or exceeding the delivery time—then consumers should not be penalised. “There is a clear need to rebalance the policies that shift the liability unfairly onto the customer,” said a senior official involved in the probe.

While both companies maintain that cancellation fees are necessary to compensate restaurants once food is prepared, consensus is growing that when delays are not the fault of the consumer, a full refund should be guaranteed.

Beyond refunds and delays, food quality has become another point of contention. Several customers have reported receiving poor-quality meals, and although the platforms position themselves as aggregators, legal experts insist that they are still bound by food safety standards. “They cannot wash their hands of accountability under existing regulations,” said one legal analyst.

The CCPA’s forthcoming orders may push India’s top food delivery platforms towards more customer-friendly practices, especially as scrutiny intensifies around their role and responsibilities in the online food delivery ecosystem.

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