A Delhi consumer commission has held Swiggy and Themis Barbeque House responsible for displaying misleading buffet pricing on the food delivery platform and directed them to jointly pay ₹1 lakh as compensation to a customer for mental agony, harassment, inconvenience and litigation costs. According to reports from NDTV Profit, the District Consumer Disputes Redressal Commission bench, led by president Divya Jyoti Jaipuriar, also directed Themis Barbeque House to refund ₹3,988 to the customer for the excess amount charged over the price displayed on Swiggy Dineout and ₹254 towards an illegally levied service charge, both with 9% annual interest. The order was issued on September 21, 2024.
The order came on a complaint by advocate Praveen Kumar Singh, who had booked a table for 14 people at Themis Barbeque House through the Dineout section of the Swiggy app for April 7, 2024. As reported by NDTV Profit, the Swiggy Dineout listing showed the "cost for two" as ₹1,500, implying a price of ₹750 per person. However, the restaurant charged ₹1,050 for a vegetarian buffet and ₹1,100 for a non-vegetarian buffet, resulting in an additional charge of ₹300 and ₹350 per person, respectively. The commission noted there was no indication on the Swiggy listing that the "cost for two" figure was merely an estimate.
The commission rejected Swiggy's contention that it was merely an intermediary and was protected under Section 79 of the Information Technology Act. According to the order reported by NDTV Profit, the commission stated that "The OP-1 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 held that the difference of around 40-47% between the displayed and actual prices was material and that the continued display of the lower price, despite Swiggy having access to accurate, itemised pricing, amounted to deficiency in service and unfair trade practice. The commission emphasized that "Responsibility falls on both" the restaurant and Swiggy, holding them equally responsible for the misleading advertisement.
The commission also dealt with the restaurant's levy of a 10% service charge on beverages. As reported by NDTV Profit, the commission noted that the menu did not disclose the charge and the bill described it as "Service Charge" instead of "Staff Contribution," as required under the interim directions then applicable. The commission held the levy to be a deficiency in service and an unfair trade practice, ordering the restaurant to refund the excess buffet amount and service charge with interest.
The amounts were directed to be paid within four weeks of receipt of the order, failing which the opposite parties would be liable to pay 12% annual interest on the entire awarded amount after expiry of the four-week period. According to NDTV Profit, the commission emphasized that both Swiggy and Themis Barbeque House must jointly and severally pay the compensation, demonstrating the shared responsibility for the misleading pricing practices.
