A Nigerian consumer has instituted legal proceedings against food delivery platform Chowdeck before the Competition and Consumer Protection Tribunal, alleging that the company conceals vendor commissions within menu prices while presenting delivery and service fees as the primary cost burden on customers.
The Complaint
Dolapo Adedeji, the claimant, filed the suit after discovering that meals ordered through the Chowdeck app cost between 20% and 50% more than identical items purchased directly from restaurants. According to documents before the tribunal, the portions and packaging were exactly the same—only the price differed .
Adedeji's legal team contends that Chowdeck charges partner vendors commissions ranging from 20% to 30%, depending on subscription tiers and promotional features. Rather than absorbing these operational costs or disclosing them transparently, the platform allegedly incorporates them into inflated menu prices. Additional delivery and service fees are then applied at checkout, creating what the claimant describes as a "misleading impression" of actual costs .
Legal Basis
The lawsuit argues that this pricing structure violates Nigeria's Federal Competition and Consumer Protection Act (FCCPA) 2018. The claimant's legal team contends that shifting business expenses onto customers who never explicitly agreed to absorb vendor commissions constitutes a deceptive commercial practice.
Furthermore, the suit challenges Chowdeck's policy of designating certain platform and service fees as "non-refundable"—even in cases where orders are cancelled or fail to be delivered. This practice, the claimant argues, amounts to an unfair contract term that ought to be invalidated under consumer protection law .
What the Plaintiff Seeks
Adedeji is asking the tribunal to compel Chowdeck to:
- Clearly indicate when menu prices differ from in-store rates
- Display any platform-induced markups before customers select items
- Cease presenting delivery fees as the sole visible extra charge when menu prices already incorporate hidden commissions
His legal team has framed the case as a matter of public interest rather than an attack on digital innovation. "Consumer rights only become real when someone insists on them," they wrote on social media platform X .
Industry Implications
Legal observers note that this case could set a significant precedent for Nigeria's rapidly growing food delivery sector. Platforms including Glovo, Jumia Food, and others operate similar commission-based models, often resulting in app prices that exceed in-store rates. A ruling against Chowdeck may compel the entire industry to overhaul its pricing display mechanisms .
Chowdeck's Position
As of press time, Chowdeck has not issued any public response to the allegations. The company has previously communicated to users that "service fees" cover technology and support costs, and recently faced criticism over the introduction of a ₦200 packaging fee attributed to rising material costs .
The matter is now pending before the Competition and Consumer Protection Tribunal.
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