Zomato stated in a regulatory filing that the company is in the process of appealing the order...
Digital Desk: The District Consumer Dispute Redressal Forum, Jodhpur, reportedly fined online meal ordering and delivery service Zomato and restaurant partner McDonald's by Rs 1 Lakh for allegedly delivering non-vegetarian food in place of a vegetarian food order.
Zomato stated in a regulatory filing that the company is in the process of appealing the order.
Zomato and McDonald's, the restaurant partner whose meal was delivered through it, have been charged Rs 1 lakh for violating the Consumer Protection Act, 2019, and awarded Rs 5,000 as litigation costs, reported District Consumer Dispute Redressal Forum (II) Jodhpur.
"Monetary penalty and cost of litigation both are to be borne jointly and severally by Zomato and McDonald's," it stated.
Additionally, Zomato stated that it is in the process of filing an appeal against the said order and based on the advice from its external counsels, Zomato believes it has a good case on merits. "The current litigation pertains to an alleged wrongful delivery of nonvegetarian food items in place of vegetarian food items," the company stated.
The terms of service that govern Zomato's relationship with the consumer make it clear that Zomato is only a conduit for the sale of food, and that the restaurant partner is in charge of any service deficiencies, incorrect order delivery, or mismatched orders, and order quality.
The company stated that the order has no significant financial, operational, or other effects on it. "The order failed to appreciate the distinction in responsibility and imposed a joint and several monetary penalties on Zomato and McDonald's under the relevant provisions of the Consumer Protection Act, 2019," the company added.
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