Chowdeck price transparency suit could set a precedent for Nigeria’s food delivery industry
A lawsuit before Nigeria’s Competition Tribunal alleges Chowdeck inflated menu prices without clear disclosure, raising broader questions about commissions, transparency and pricing in the food delivery industry.
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A suit filed before the Competition and Consumer Protection Tribunal could have far-reaching implications for Nigeria’s eCommerce and food delivery sectors if the reliefs sought are granted.<br />
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The action, instituted this month in Abuja by Dolapo Adedeji, alleges that Chowdeck misrepresents the true cost of meals purchased through its platform. According to the claimant, while the company presents delivery and service charges as the only additional costs borne by consumers, it allegedly inflates the base price of food items without clearly or transparently disclosing this markup.<br />
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Adedeji states that they ordered a meal through Chowdeck while already aware of the price charged at the restaurant’s physical location. Noticing that the price listed on the platform was significantly higher, the claimant says they assumed the difference reflected a larger portion size or some variation in quality that would justify the increase.<br />
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However, upon receiving the order, the claimant maintains that the meal was neither larger nor materially different in quality or packaging from what is sold at the restaurant’s outlet.<br />
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The suit further alleges that enquiries made directly with the vendor revealed that Chowdeck exercises control over pricing on its platform, contrary to representations that restaurants determine their own prices. As a result, food items listed on the platform were allegedly priced between 25% and 50% higher than in-store rates even before delivery and service fees were applied.<br />
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The claimant is accordingly asking the Tribunal to determine:<br />
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Whether presenting menu prices that are materially higher than those charged by the vendor, without adequate disclosure, constitutes a violation of Section 115 of the Federal Competition and Consumer Protection Act, 2018.<br />
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Whether the alleged failure to disclose that listed menu prices incorporate additional platform markups amounts to a material omission and a misleading representation capable of deceiving the ordinary consumer.<br />
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Wheth...
