A price displayed on a food delivery or dining app can play a major role in a customer’s decision to make a booking. But when the amount shown online is significantly different from what the customer is charged at the restaurant, it can become a serious consumer issue.
A Delhi consumer commission has now held Swiggy and Themis Barbeque House responsible for displaying a misleading buffet price on Swiggy Dineout. The commission directed both parties to jointly and severally pay Rs 1 lakh to a customer for mental agony, harassment, inconvenience and litigation costs.
The restaurant has also been directed to refund the excess amount charged to the customer, along with a service charge that the commission found to have been improperly levied.
Customer Booked Table For 14 People
The case was filed by advocate Praveen Kumar Singh, who booked a table for 14 people at Themis Barbeque House through the Dineout section of the Swiggy app for April 7, 2024. At the time of booking, the Swiggy listing showed the restaurant’s “cost for two” as Rs 1,500. This suggested a price of around Rs 750 per person.
However, the actual buffet prices at the restaurant were considerably higher. The vegetarian buffet was priced at Rs 1,050 per person, while the non-vegetarian buffet cost Rs 1,100 per person.
This resulted in an additional charge of Rs 300 per person for the vegetarian buffet and Rs 350 per person for the non-vegetarian buffet. The consumer commission noted that the Swiggy listing did not clearly indicate that the “cost for two” amount was merely an estimate.
Commission Finds Price Difference Significant
The commission examined the difference between the price displayed on the platform and the actual buffet charges. It noted that the gap was around 40-47 per cent, which it considered material. The commission held that continuing to display the lower amount, despite Swiggy having access to accurate and itemised pricing, amounted to deficiency in service and unfair trade practice.
The order made it clear that the responsibility did not rest only with the restaurant. “Responsibility falls on both” the restaurant and Swiggy, the commission said while holding them responsible for the misleading representation. This became an important part of the case because the customer had relied on the information available through Swiggy Dineout while making the booking.
Swiggy’s Intermediary Argument Rejected
Swiggy argued that it was merely an intermediary between customers and restaurants and also relied on the protection available to intermediaries under Section 79 of the Information Technology Act. The consumer commission, however, rejected the argument as a sufficient defence in this case. The commission said,
“The OP-1 (Swiggy) cannot escape from its responsibility merely by quoting section 79 of the Information Technology Act. It has to show conclusively that the OP-1 was performing due diligence in all respects as necessitated in the respective legislations and rules framed thereunder.”
The commission further noted that Swiggy had failed to place anything on record showing that it had a mechanism to reconcile the “cost for two” displayed on its platform with the actual prices charged by the restaurant. The finding means that simply being an online intermediary did not, in this case, remove Swiggy’s responsibility for the information displayed to consumers.
Restaurant Also Charged Service Charge
The commission also examined another issue in the customer’s bill. The restaurant had levied a 10 per cent service charge on beverages. According to the order, the menu did not disclose this charge.
The bill also described the amount as “Service Charge” instead of “Staff Contribution”, as required under the interim directions applicable at the time. The commission held that the levy amounted to deficiency in service and an unfair trade practice. The restaurant has therefore been directed to refund Rs 254 collected as the service charge.
Restaurant Ordered To Refund Rs 3,988
Apart from the Rs 1 lakh compensation, Themis Barbeque House has been directed to refund Rs 3,988 to the customer. This represents the excess amount charged over the price displayed on Swiggy Dineout. The restaurant must also pay 9 per cent annual interest on both the Rs 3,988 refund and the Rs 254 service-charge amount.
The commission has directed that the payments be made within four weeks of receipt of the order. If the parties fail to comply within that period, the awarded amount will attract 12 per cent annual interest after the four-week deadline expires.
Swiggy And Restaurant Jointly Liable For Rs 1 Lakh
The biggest financial direction in the case is the Rs 1 lakh compensation. The consumer commission ordered Swiggy and Themis Barbeque House to jointly and severally pay Rs 1 lakh to the customer for mental agony, harassment, inconvenience and litigation costs.
The order was passed by the District Consumer Disputes Redressal Commission, with president Divya Jyoti Jaipuriar heading the bench. The commission’s decision highlights the importance of accurate price information on online platforms. When customers make decisions based on a price shown on an app, a substantial difference at the point of payment can affect their choice.
A Reminder For Online Food Customers
The case is also a reminder for customers using food delivery and restaurant-booking platforms to check the complete pricing before making a booking. Additional charges, buffet rates, taxes and service charges can sometimes affect the final bill. In this case, however, the commission found that the difference between the advertised “cost for two” and the actual buffet price was too significant to be treated as a minor variation.
The order has therefore placed responsibility on both the restaurant and the platform. For consumers, it reinforces a simple expectation: the price displayed while making a booking should give a clear and accurate picture of what they are likely to pay.
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