Swiggy fined ₹35,000 for inflated delivery fee of ₹103
What's the story
In a blow to food delivery giant Swiggy, the District Consumer Disputes Redressal Commission in Ranga Reddy, Telangana has ruled against the company for unfair trade practices. The court found the company guilty of artificially increasing delivery distances, resulting in extra charges for a customer. Following the verdict, Swiggy has been ordered to pay ₹35,453 as total compensation to complainant Emmadi Suresh Babu.
Case details
Swiggy One member's complaint leads to court ruling
Suresh Babu, a Hyderabad resident, had bought a Swiggy One membership promising free delivery within a certain distance. However, on November 1, 2023, he observed that the company had increased the delivery distance for his order from 9.7km to 14km. This change resulted in an additional delivery fee of ₹103 even with his membership benefits.
Evidence examination
Court verifies evidence of inflated delivery distance
The court looked into the evidence submitted by Suresh Babu, including screenshots from Google Maps depicting the real delivery distance was shorter than what Swiggy had indicated. It was noted that Swiggy had grossly exaggerated this distance. Since the company skipped the hearings, the court moved ahead on the basis of Babu's affidavit and supporting documents.
Court's order
Swiggy ordered to pay damages and stop unfair practices
The commission has directed Swiggy to refund ₹350.48 with 9% interest from the filing date, and the ₹103 delivery charge. Further, the company has been asked to pay ₹5,000 for mental distress and inconvenience caused to Suresh Babu, and pay his litigation charges of another ₹5,000. The court also asked Swiggy to stop inflating delivery distances for its Swiggy One members.
Additional penalty
Swiggy must deposit punitive damages into Consumer Welfare Fund
The court has also directed Swiggy to deposit ₹25,000 as punitive damages into the Consumer Welfare Fund of the Ranga Reddy District Commission. The company has been given 45 days to comply with the orders. This ruling comes as a major reminder for businesses about the need for fair trade practices and protecting consumer rights.