Swiggy Fined ₹1,000 by Ahmedabad Consumer Court Over Cancelled Order

Ahmedabad Consumer Court orders Swiggy to pay ₹1,000 to customer Prasad Kanade for mental harassment caused by a cancelled order. Swiggy was also directed to refund ₹104 with 9% interest for the undelivered sweets.

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Aqsa Younas Rana
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Swiggy Fined ₹1,000 by Ahmedabad Consumer Court Over Cancelled Order

Swiggy Fined ₹1,000 by Ahmedabad Consumer Court Over Cancelled Order

The Ahmedabad Consumer Court has ordered food delivery platform Swiggy to pay ₹1,000 in compensation to customer Prasad Kanade for mental harassment caused by a cancelled order in November 2022. Kanade, a resident of Bhadra, Ahmedabad, had placed an order for sweets worth ₹549 on Swiggy but never received the delivery.

Why this matters: This ruling sets a precedent for food delivery platforms to take responsibility for ensuring seamless transactions and providing fair compensation to customers in case of service issues. As the food delivery market continues to grow, companies will need to prioritize customer satisfaction and effective dispute resolution to maintain trust and avoid legal repercussions.

Despite only receiving a partial refund of ₹445, Swiggy allegedly failed to provide prior notification of the cancellation. Dissatisfied with the service, Kanade filed a complaint with the Consumer Dispute Redressal Commission. Swiggy contested the complaint, arguing that they merely acted as an intermediary connecting customers with restaurants and delivery agents and therefore should not be held responsible for issues related to orders. The platform also claimed that it was Kanade who had cancelled the order.

However, the consumer court ruled in favor of Kanade, emphasizing Swiggy's responsibility as a service provider to ensure seamless transactions. The commission stated, "Since Swiggy accepted payment for the service, they are a service provider and are responsible for ensuring a smooth transaction." The court directed Swiggy to refund the outstanding ₹104 along with 9% interest and pay ₹1,000 to Kanade as compensation for mental strain and litigation expenses.

This is not the first time Swiggy has faced penalties for service issues. Just last month, the company was fined ₹5,000 by a consumer court in Bengaluru for failing to deliver an ice cream order. The Bangalore Urban II Additional District Consumer Redressal Commission directed Swiggy to pay ₹3,000 as compensation, ₹2,000 as litigation costs, and refund the ice cream amount of ₹187 to the customer.

The Ahmedabad Consumer Court's ruling against Swiggy serves as a reminder of the legal responsibilities and potential consequences food delivery platforms face in ensuring satisfactory service to their customers. As these services continue to grow in popularity, companies will need to prioritize effective communication, timely resolution of issues, and fair compensation to maintain customer trust and avoid legal repercussions.

Key Takeaways

  • Ahmedabad Consumer Court orders Swiggy to pay ₹1,000 to customer for mental harassment.
  • Swiggy failed to deliver sweets worth ₹549, causing customer distress.
  • Court rules Swiggy responsible as service provider for seamless transactions.
  • This is not Swiggy's first penalty; previously fined ₹5,000 for failing to deliver ice cream.
  • Ruling sets precedent for food delivery platforms to prioritize customer satisfaction.