“Restaurant Packing Charges” on your Zomato/Swiggy bill is unlawful.
Recently a consumer court in Gujarat has ruled that fast food chains KFC and Pizza Hut should not charge extra fees for packaging charges from consumers (1)

According to the guidelines of the Department of Consumer Affairs,
“A component is inherent in the provision of the food and beverages ordered by a customer. Pricing of the product, therefore, is expected to cover both the goods and service components.”

Basically, the price of the product or service is believed to include all operating expenses as well as profit margins in it.

In 2021, a consumer court in Hyderabad slapped a INR 50,000 fine on a restaurant for the same (2)

Also, restaurant packaging charges during takeaway are also illegal (3)

Although it is the restaurant partners who decide the packaging fee and not Zomato/Swiggy, Zomato/Swiggy should remove this option from their platforms.

  1. ‘KFC, Pizza Hut to pay packaging fee’: Consumer court rules on Zomato customer’s plea – https://www.moneycontrol.com/news/trends/kfc-pizza-hut-should-pay-packaging-fee-consumer-court-on-zomato-customers-plea-11126841.html

  2. Consumer Court Terms Packing Charges on Online Food Orders as ‘Unfair’, Slaps Rs 50K Fine – https://www.thebetterindia.com/251776/hyderabad-kfc-swiggy-online-order-packing-charges-illegal-district-consumer-rights-court-vijay-gopal-activist-nor41/

  3. No Restaurant Packing charge on takeaway – https://www.casemine.com/judgement/in/5c6f89d64a9326759e39e932

  4. WHAT ARE THE LEGAL CHARGES CHARGED BY THE RESTAURANT? – https://www.writinglaw.com/legal-charges-by-restaurant/

Note: In case you are looking for a Product Management course, I would highly recommend joining this cohort-based course – ISB Executive Education – Product Management program

PS: You can connect with me for review or referral discount (link for referral discount)

Opinions are my own and not the views of my employer (if any)

When I am not working/watching movies/reading books/traveling, you can reach me via my Twitter/LinkedIn or you can contact me here

Categories: Quick Reads