Competition Commission warns food delivery companies over unfair practices

The Office of Trade Competition Commission says it’s keeping an eye on the practices of food delivery companies to ensure restaurants that are currently unable to serve food on their premises are not being ripped off. Nation Thailand reports that the OTCC says operators who hike up their commission will face hefty fines of up to 10% of their annual revenue.

Popular delivery apps for companies like Food Panda and Grab Food charge quite high commissions for being on their app and providing delivery services. They also have additional charges for promotions that get YOUR restaurant up front as customers scroll around.

OTCC secretary-general Somsak Kiatchailak says that in accordance with the 2018 Competition Act, food delivery providers who overcharge restaurants for promotions, or who otherwise include unfair conditions in their contracts, will be monitored and penalised accordingly. He says many operators have introduced terms that make it difficult, if not impossible, for restaurants to switch to a competing delivery service if they wish to do so.

Somsak says a new sub-committee is drafting regulations to stop such practices, adding that both sides of the debate will be invited to discuss the issues prior to any regulations being introduced.

Although many restaurants across Thailand are now permitted to open, they are still governed by restrictions in place to curb the spread of the Covid-19 virus, including social distancing requirements and a ban on the consumption of alcohol on-site. Some are currently not in a position to re-open, relying instead on food delivery services to help them stay financially afloat and reach hungry customers.

SOURCE: Nation Thailand