Consumer Commission’s Ruling Against Swiggy

In a recent ruling, the district consumer disputes redressal commission of Ranga Reddy district in Hyderabad penalized Swiggy with a Rs 25,000 fine for engaging in deceptive practices. Swiggy was found guilty of artificially inflating delivery distances to levy extra charges, misleading customers who had purchased the Swiggy One membership under the impression of receiving free deliveries within a specific range. Additionally, Swiggy was ordered to pay Rs 5,000 for the complainant’s mental distress and inconvenience, along with Rs 5,000 to cover legal expenses. The total financial penalty imposed on Swiggy, amounting to Rs 35,000, reflects the consumer commission’s stance against unfair trade practices in online food delivery.

The Complainant’s Experience with Swiggy

Emmadi Suresh, a government employee residing in Hyderabad’s Balanagar area, had purchased the Swiggy One membership, which promised free deliveries within a designated distance. On September 27, 2023, he ordered food and noticed a Rs 103 delivery charge for a distance of 9.7 kilometers, despite his membership. The issue escalated on November 1, 2023, when Suresh’s delivery distance was unexpectedly shown as 14 kilometers for the same route, leading to additional delivery charges. Feeling deceived, Suresh contacted Swiggy, which responded that delivery routes may vary due to mobile GPS changes. However, the response did not clarify why the distance was exaggerated.

Frustrated, Suresh filed a complaint with the Ranga Reddy district consumer commission, stating that Swiggy’s alleged practices violated consumer rights. Swiggy did not respond to the commission’s notice and failed to appear for the hearing, resulting in a judgment favoring Suresh by default.

Judgment and Penalties Imposed on Swiggy

The consumer commission’s investigation concluded that Swiggy’s alleged practice of inflating delivery distances represented an unfair trade practice, which could mislead multiple users. The ruling mandated Swiggy to cease this deceptive conduct, refund Rs 350.48 (plus 9 percent interest) and Rs 103 as a “delivery partner fee.” The focus keyword “Swiggy fined for inflated delivery” highlights the commission’s decision to set an example for online platforms engaging in similar practices.

The ruling underscores that such deceptive actions do not align with consumer protection laws and set a precedent for similar cases in Hyderabad and beyond. The commission’s decision holds Swiggy accountable and reaffirms consumer rights in the evolving online food delivery industry.

Fee Hikes Amid Festive Season

The ruling also arrives during a period when Swiggy, along with other leading food delivery platforms like Zomato, recently increased their platform fees in cities, including Hyderabad. This hike coincides with the festive season, a peak time for food delivery orders. Swiggy’s app displays a message explaining that the “festive season platform fee” is intended to help operate and enhance the platform’s functionality, especially during high-demand periods. However, the recent consumer ruling against Swiggy and the rising delivery charges have led some customers to question the company’s pricing practices.

Consumer Commission’s Stand on Unfair Trade Practices

The district consumer commission’s order reinforces the importance of fair business practices, especially within the online services sector. According to the commission, Swiggy’s actions violated consumers’ trust and constituted a deficiency in service. By imposing fines, ordering compensations, and demanding refunds, the commission highlighted the role of consumer protection agencies in safeguarding public interest and holding corporations accountable. With the focus keyword “Swiggy fined for inflated delivery,” this judgment serves as a reminder to businesses that exploitative practices may result in legal consequences.

Implications of the Judgment for Swiggy

The recent judgment against Swiggy emphasizes the consumer commission’s determination to protect customer rights, especially as online service providers continue to grow in scope and influence. For customers, it reinforces the right to accurate information and transparency in charges. For Swiggy, this ruling could lead to an internal reassessment of pricing policies and distance calculations. As consumers become increasingly aware of their rights, instances like “Swiggy fined for inflated delivery” may serve as a warning to other companies employing similar practices. The legal framework around online consumer services is evolving, with this case possibly influencing future regulations.