Govt directs e-Commerce FBOs to show breakup of all charges
Jun 13, 2022
New Delhi [India], June 13 : The Department of Consumer Affairs on Monday said it has directed e-commerce food business operators to transparently show the breakup of all charges included in the order amount such as delivery, packaging, taxes and surge pricing on their products.
The Department has also directed major e-commerce food business operators to furnish the current framework as well as a proposal on improving the consumer grievance redressal mechanism within 15 days.
The direction was given during a meeting chaired by Secretary, Department of Consumer Affairs, Rohit Kumar Singh with major e-commerce food business operators, to discuss pertinent issues which affect consumers in this sector, the Ministry of Consumer Affairs, Food & Public Distribution said in a statement.
During the meeting, major issues raised by the consumers on the National Consumer Helpline of DoCA were discussed including the veracity of the amount of delivery and packing charges and the reasonability of such charges, disparity between the price and quantity of food items shown on the platform and actually offered by the restaurant, inconsistency in the delivery time shown to consumers at the time of placing an order and the time at which the order is actually delivered, and absence of any mechanism to separate genuine reviews from fake ones.
The National Restaurant Association of India (NRAI) raised the issue of customer information not being shared by the e-commerce FBOs with the restaurants which impacts their ability to serve the consumer needs better. Further, delivery charges are determined and levied by the latter. Further, a commission of around 20 per cent is also charged by the online FBOs on each order.
E-commerce FBOs were directed by the Department to transparently show consumers the breakup of all charges included in the order amount such as delivery charges, packaging charges, taxes, surge pricing etc. Platforms must also show individual consumer reviews transparently and refrain from showing only the aggregation of reviews, the ministry said.
It was emphasised that the right of choice for a consumer should be respected and the e-commerce FBOs were advised to allow consumers the choice to share their contact information with the restaurants, if the consumers want so, it said.
The e-commerce FBOs observed that prices of food items are decided by the restaurants and they have a grievance redressal mechanism in place which does have a scope for improvement considering the number and nature of grievances registered by consumers.
During the meeting, stakeholders acknowledged the need to address consumer grievances closely and develop a robust grievance redressal framework. They assured that the concerns raised in the meeting will be duly taken into consideration and the proposed improved and transparent framework will be shared with the Department in 15 days, the ministry said.
