The Central Consumer Protection Authority (CCPA) is preparing to direct food delivery giants Zomato and Swiggy to overhaul their order cancellation policies and improve refund mechanisms, according to sources familiar with the matter, reported Moneycontrol. This move comes as the regulator deepens its investigation into alleged unfair consumer practices by the two platforms.
Officials involved in the matter said the CCPA will also ask the companies to make necessary software modifications to ensure that customers are not subjected to disproportionately high cancellation fees, some reportedly amounting to nearly 90% of the order value, and to facilitate faster refunds when orders are cancelled.
The directive follows a suo motu probe launched by the CCPA in October 2024 in response to a surge in consumer complaints over delayed deliveries, refund disputes, and service-related issues. Sources say the regulator is particularly concerned about situations where delays are caused by internal platform inefficiencies, such as failure to assign a delivery agent or extended wait times that exceed the originally promised delivery estimate.
“Customers should not be penalised for problems caused by the platforms themselves,” said a senior official aware of the matter. “There is a clear need to revise cancellation policies that currently shift the burden entirely onto the consumer.”
Consumer complaints filed with the National Consumer Helpline (NCH) paint a troubling picture. Swiggy alone faced 10,590 complaints in 2024, of which nearly 4,000 were related to poor service and over 900 involved refund issues. Zomato wasn’t far behind, with 7,938 complaints registered in the same period.
The platforms have defended their existing policies, arguing that order cancellations incur unavoidable costs. “If food is already prepared when an order is cancelled, the restaurant must still be paid, whether or not the order is completed,” a source close to the matter explained. “However, there is broad consensus that delays beyond the estimated delivery time should entitle customers to a full refund.”
In addition to cancellation and refund concerns, complaints about food quality have also been mounting. Many consumers report receiving substandard meals, yet the platforms have historically distanced themselves from liability, claiming they function solely as aggregators and do not control food quality or pricing.
Legal experts, however, argue that Zomato and Swiggy are not absolved from responsibility. “Under food safety regulations, these platforms are also accountable for ensuring the quality of food delivered via their services,” said a legal analyst.
The upcoming intervention by the CCPA may compel India’s leading food delivery platforms to adopt more transparent, customer-centric practices. For now, all eyes are on how Zomato and Swiggy respond to mounting regulatory pressure and public scrutiny.