AI generated imageNEW DELHI: A Chandigarh district consumer commission, in an order dated July 28, held Domino's Pizza guilty of unfair trade practice after it charged a customer a packaging fee only on a home delivery order and not for takeaway and dine-in orders. Holding that the company failed to justify why the charge was imposed only on home delivery despite using same pizza boxes, the commission directed it to refund the money with interest and pay compensation.How did the packaging charge turn into a consumer dispute?As per the commission's order, the complainant placed a home delivery order through Domino's mobile app on January 8, 2025, and paid Rs 185.90. When he checked the invoice, he found that Rs 20 had been charged separately as a packaging fee. A few days later, he placed takeaway and dine-in orders from the same outlet and found that no packaging charge had been added, even though the food was packed in the same type of pizza boxes. He also claimed that Domino's terms and conditions did not mention any separate packaging fee for home delivery. Alleging that the charge was arbitrary and unfair, he approached the consumer commission.However, Domino's argued that the packaging charge was clearly shown on the invoice before payment and that the customer voluntarily accepted it while placing the order. It also said that packaging was necessary to ensure safe delivery and preserve the quality of the food. The company claimed that if the customer did not agree with the charge, he could have cancelled the order instead of completing the payment.Why did the commission rule against Domino's?The bench comprising President Pawanjit Singh and Member B.M. Sharma noted that the photographs placed on record showed the food was packed in similar pizza boxes for home delivery, takeaway and dine-in orders. It found that Domino's failed to produce any evidence showing that extra or special packaging had been used for the home delivery order to justify charging a separate packaging fee."The OPs have failed to place on record any cogent evidence to prove that any additional or special packaging material was used exclusively for the home delivery order... so as to justify the separate levy of packaging charges," the commission observed.The commission also rejected Domino's argument that the customer had accepted the charge by making the payment. It observed that simply mentioning a charge in the invoice does not make it valid if the charge itself is unfair or unreasonable. It further noted that Domino's failed to explain why only home delivery customers were made to pay the packaging fee when the same packaging was used for takeaway and dine-in orders."Merely displaying a charge in an invoice cannot validate an unfair or arbitrary levy, if such charge is otherwise found to be unreasonable or discriminatory in nature," it further added.The commission further observed that the order qualified for free delivery as it was above the minimum order value, yet Domino's still charged an additional packaging fee without proving that any extra service or cost was involved. It held that this amounted to an unfair trade practice and deficiency in service."Charging an additional amount under the head of packaging charges, without establishing any additional service or cost attributable solely to the complainant's order, amounts to an unfair trade practice," the bench noted.Partly allowing the complaint, the commission directed Domino's to refund the Rs 20 packaging charge with 9 percent annual interest from January 8, 2025, pay Rs 2,000 as compensation and litigation costs, and deposit Rs 20,000 in the Poor Patient Welfare Fund at PGIMER, Chandigarh, within 45 days. It said that if the order is not complied with within the stipulated time, the refund and compensation amounts will carry 12% annual interest until payment.
Domino's ordered to pay compensation for charging packaging fee only on home delivery
NEW DELHI: A Chandigarh district consumer commission, in an order dated July 28, held Domino's Pizza guilty of unfair trade practice after it charged a customer a packaging fee only on a home delivery order and not for takeaway and dine-in orders. Holding that the company failed to justify why the charge was imposed only on home delivery despite using same pizza boxes, the commission directed it to refund the money with interest and pay compensation.










