Swiggy and Zomato refuse to refund customers for cancelled orders: Difference between revisions
Indian food and grocery ordering platforms Zomato and Swiggy refuse to refund their customers if they cancel their food orders. This appears to occur only when the customer pays in advance for the order. There is an active inquiry against the two companies by the Central Consumer Protection Authority of India for their policies relating to cancellation of food orders. |
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Indian food and grocery ordering companies Zomato and Swiggy refuse to refund their customers if they cancel their order. This has been noted to occur when the customers pay in advance for their food orders (prepaid orders). | Indian food and grocery ordering companies Zomato and Swiggy refuse to refund their customers if they cancel their order. This has been noted to occur when the customers pay in advance for their food orders (prepaid orders). | ||
The cancellation policy of Swiggy states that they may withhold the refunds if a prepaid customer cancels their order deeming such cancellation a "breach of contract". | The [https://www.swiggy.com/refund-policy cancellation policy of Swiggy] states that they may withhold the refunds if a prepaid customer cancels their order deeming such cancellation a "breach of contract".<ref>{{Cite web |last=Bansal |first=Aakriti |date=22 May 2025 |title=Why the CCPA Is Questioning Zomato and Swiggy’s Approach to Refunds & Cancellations |url=https://www.medianama.com/2025/05/223-ccpa-probes-zomato-swiggy-cancellation-refund-policies/ |url-status=live |access-date=26 May 2025 |website=Medianam}}</ref> | ||
The terms of service of Zomato similarly calls such cancellation an "Authorization Breach" for which they claim the right to withhold the refund amount. | The [https://www.zomato.com/policies/terms-of-service/ terms of service of Zomato] similarly calls such cancellation an "Authorization Breach" for which they claim the right to withhold the refund amount. | ||
There are two consumer rights concerns with such practices: | There are two consumer rights concerns with such practices: | ||
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These policies also negatively affect the restaurant owners as they receive no compensation for a cancelled order and further have their payouts reduced by the sum of refunds for cancelled orders. The food prepared by the restaurants before the order is cancelled also goes to waste. | These policies also negatively affect the restaurant owners as they receive no compensation for a cancelled order and further have their payouts reduced by the sum of refunds for cancelled orders. The food prepared by the restaurants before the order is cancelled also goes to waste. | ||
The has been an inquiry instituted to review these practices by the Central Consumer Protection Authority of India. | The has been an inquiry instituted to review these practices by the Central Consumer Protection Authority of India.<ref>{{Cite web |last=Burgula |first=Pavan |date=21 May 2025 |title=CCPA may ask Zomato, Swiggy to revise cancellation policies |url=https://www.moneycontrol.com/news/business/companies/ccpa-may-ask-zomato-swiggy-to-revise-cancellation-policies-1 3038009.html |url-status=live |access-date=25 May 2025 |website=Moneycontrol}}</ref> | ||