CCPA may direct Zomato, Swiggy to revise cancellation and refund policies
Currently, some customers are charged up to 90% of the order value when cancelling — even in cases where delays or service disruptions are on the platform’s end.
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India’s top consumer regulator is likely to direct food delivery platforms Zomato and Swiggy to revise their order cancellation policies, amid growing complaints over steep charges and delays, according to people familiar with the matter.
The Central Consumer Protection Authority (CCPA) is expected to ask the platforms to rework their software systems to ensure more customer-friendly practices — including lower cancellation charges and faster refunds for cancelled or delayed orders, according to a report by Moneycontrol.
This follows an ongoing investigation by the CCPA into alleged unfair trade practices. The regulator had initiated a suo-moto probe in October 2024 after receiving a wave of complaints from consumers via the National Consumer Helpline (NCH).
“Customers are being penalised for platform-related issues such as delays in assigning delivery agents or the actual delivery time exceeding the promised ETA,” said a source aware of the discussions. “The cancellation policy needs to be re-evaluated.”
Currently, some customers are charged up to 90% of the order value when cancelling — even in cases where delays or service disruptions are on the platform’s end. Emails sent to Zomato and Swiggy remained unanswered at the time of publication.
Mounting Consumer Complaints The NCH received over 10,500 complaints against Swiggy and nearly 8,000 against Zomato, including thousands related to refund issues and service deficiencies. Of Swiggy's total complaints, over 4,000 pertained to deficient service, while more than 900 were specifically about refunds not being processed.
Food aggregators have argued that cancellations come with sunk costs, especially when orders are already prepared, as they still need to pay restaurants. However, sources said that customers should be entitled to full refunds if delays occur beyond the promised delivery time.
Apart from cancellations, a significant share of complaints are about poor food quality. While the platforms have maintained that they function solely as aggregators — not responsible for food quality or pricing — legal experts suggest otherwise.
“Under food safety regulations, these platforms are also accountable for the quality of food being delivered through their networks,” said a legal expert.
Consumers and legal voices alike have called for full refunds in cases involving substandard or unhealthy food, and penalties for the restaurants responsible.
The CCPA is expected to announce its findings and recommendations soon, potentially reshaping how India’s largest food delivery platforms operate in terms of consumer grievance redressal and service accountability.
