Food delivery app Swiggy has been fined over ₹35,000 for overcharging its ‘Swiggy One membership’ customer in Hyderabad by inflating delivery distance. The judgment against Swiggy was ruled by the District Consumer Disputes Redressal Commission in Hyderabad, a report by Times of India stated.
Here’s what happened
As per the report, Emmadi Suresh Babu had purchased a “Swiggy One membership” which offers free delivery charges till specific distance. However, on November 1, when he placed an order, Swiggy raised the delivery distance from 9.7 kilometers to 14 kilometers, resulting in a delivery fee of ₹103.
After this, Emmadi then filed a complaint. After examining the evidence, which included Google Maps screenshots provided by Emmadi, the court observed a significant increase in the delivery distance. The report further noted that Swiggy did not attend the hearings, however, the court moved forward without their participation.
What fine did the court levy on Swiggy?
As per TOI report, the commission ruled that Swiggy must pay to the customer ₹350.48 with an interest of 9 percent from the complaint filing date, along with reimbursing a 103 rupee delivery charge. Additionally, the report added that Swiggy was ordered to pay ₹5,000 for the mental distress and inconvenience caused to the customer while additional ₹5,000 rupees for litigation costs. The commission further also ordered Swiggy to stop raising delivery distances for Swiggy One members.
Moreover, Swiggy was ordered to pay ₹25,000 in punitive damages, which it asked to be deposited into the consumer welfare fund of the Reddy Ranga district commission, TOI report stated.
Swiggy raises platform fee
Prior to Diwali, Swiggy raised the platform fee to ₹10 from ₹6 it charged earlier. Not just Swiggy, Zomato too had increased platform fee from ₹7 to ₹10. In contrast to this, Hyperlocal e-commerce app magicpin slashed platform charges to ₹5 per delivery, a top company official said on Sunday as reported by PTI.
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