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Why companies like Zomato and Swiggy are in trouble with the Indian government over user complaints?

Zomato

Major e-commerce food business operators like Swiggy and Zomato* have been asked to furnish details about their consumer grievance redressal mechanism within 15 days, according to a press release shared by the government. The Department of Consumer Affairs (DoCA) has also asked the companies to submit a proposal on how they can improve this framework. Why it matters: The popularity of food aggregators has surged in recent years as people are forced to stay indoors on account of the pandemic. The popularity has also led to an increase in the number of complaints from consumers casting spotlight on business practices of these companies. Where was this decision made: The companies were instructed during a meeting chaired by the secretary of the department, Rohit Kumar Singh. The meeting was held to discuss several issues affecting the consumers of these companies. Who all attended the meeting: The meeting saw attendance of major online food business operators such as Swiggy and Zomato. The National Restaurant Association of India (NRAI), which has been at loggerheads with these companies, was also present in the meeting attendance. The following officials were also present: Nidhi Khare, Additional Secretary, DoCA Anupam Mishra, Joint Secretary, DoCA What was discussed during the meeting: The issues raised by consumers in their complaints were discussed during the meeting. The NRAI stressed that the online food business operators should share customer information with the restaurants so that they can serve the needs of their consumers better. It also informed the government that delivery charges…

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I cover several beats such as Crypto, Telecom, and OTT at MediaNama. I can be found loitering at my local theatre when I am off work consuming movies by the dozen.

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