CCPA asks quick commerce companies to prove claims of delivery in “10 mins or less”

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Quick commerce companies in India have been asked to prove that they are delivering in “10 minutes or less” as claimed in their advertisements. The Central Consumer Protection Authority (CCPA), which is part of the Ministry of Consumer Affairs, has asked players like Blinkit, Swiggy Instamart, Zepto and Big Basket (BB Now) to share data which shows their median delivery times and claims match with each other, multiple senior government officials told Moneycontrol.

When quick commerce gained prominence in 2020, many questioned the need for 10 minute deliveries. Back then companies delivered just daily grocery items but the sector has matured since then and has now become a mainstay. The sector has gone from a good to have one to an indispensable one in just over three years, according to analysts at UBS.

As the sector gains prominence, the government wants to ensure the messaging and claims are both in line and that no firm is misleading customers.

“Instant delivery platforms have been asked to share their median delivery times across major cities like Bengaluru, Mumbai, Delhi, Kolkata, and Chennai,” a senior government official told Moneycontrol.

He added that companies are not expected to make any changes for now but if they fail to justify their claims, the messaging will have to be altered to reflect the reality. That essentially means that companies will have to tweak their ads from saying delivery “in 10 minutes or less” to delivery in “15 minutes or less,” as per sources.

Blinkit, Swiggy Instamart, Zepto and Big Basket (BB Now) did not respond to Moneycontrol’s emails seeking details. E-mails sent to CCPA and Ministry of Corporate Affairs remained unanswered at the time of publishing. Moneycontrol has seen a copy of the circular sent to the companies.

This holds true for all “10 minutes or less” advertisements across television, print, and digital platforms.

Buffer of 4 minutes

The government, however, is providing some leeway to quick commerce companies. “We’re okay if the median delivery timeline even extends up to 14 minutes, from 10 minutes, but any delay beyond that buffer will mean companies have to change their advertising message,” one of the officials cited above said.

Moneycontrol had earlier reported that Zepto, the third-largest player after Blinkit and Swiggy Instamart, was slowing down deliveries from 10 minutes to 13 minutes to make each order more profitable.

“So far we have shared 14 minutes as the temporary benchmark to keep their current advertising, but have also asked companies to work towards reducing delivery timings,” a second senior government official said.

He added that steps taken by the government are on the back of a rise in customer complaints about the delivery time of the aforementioned platforms and a lack of clarity on refunds and compensation for delayed orders.

The consumer safety watchdog also plans to meet with executives from food delivery platforms, after receiving data from them, to come up with guidelines to protect customers in cases when orders are delayed, sources told Moneycontrol.

Dark patterns

The consumer safety watchdog has stepped up its scrutiny of e-commerce platforms in the last few years after a spurt in unfair trade practices.

Last year chairperson of the CCPA, Nidhi Khare said that e-commerce-related complaints have increased 30-40% over the last four-five years.

“During the pandemic, consumers shifted to e-commerce and thus the government wants to ensure no unfair trade practices are prevalent through these platforms,” Khare had earlier told CNBC-TV18.

The CCPA in December 2023 had also sent notices to retail giant Amazon over the alleged use of dark patterns on its website to trick customers into purchasing an Amazon Prime membership, as reported by Moneycontrol.

Similarly, the CCPA had warned food delivery platforms like Zomato and Swiggy over the alleged use of dark patterns on their mobile applications to trick customers into purchasing their premium subscriptions.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow