A lawsuit has been filed against food delivery platform Chowdeck at the Competition and Consumer Protection Tribunal for allegedly inflating food prices on its app.
The suit filed by Dolapo Adedeji accuses Chowdeck, the fast-growing food startup, of undisclosed markups on menu prices and of misrepresenting the true cost of meals purchased through its platform, Techpoint Africa reported.
According to Mr Adedeji, the company presents delivery and service charges as the only additional costs borne by consumers, but inflates the base price of food items without clearly or transparently disclosing the markup.
Mr Adedeji stated that they ordered a meal through Chowdeck, even though they were already aware of the price charged at the restaurant’s physical location.
He alleged that the price listed on the platform was significantly higher. Mr Adedeji added that they assumed the difference reflected a larger portion size or some variation in quality that would justify the increase, but this was not the case.
Mr Adedeji also claimed in the suit 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 per cent and 50 per cent higher than in-store rates, even before delivery and service fees were applied.
Mr Adedeji asked the tribunal to determine whether listing prices that are materially higher than in-store rates without clear disclosure are unlawful; whether failing to inform customers that menu prices already include platform commission amounts constitutes deception; and whether retaining certain non-refundable fees constitutes unfair trade practices.
Mr Adedeji’s lawyer, Abdulrahman Akinyemi, said, “The goal is not merely compensation. It is to strengthen compliance practices and ensure consumers can see exactly what they are paying for.”
