A Nigerian consumer has taken food delivery platform Chowdeck to court over allegations that it hiked menu prices above what restaurants charge in-store, stacked delivery and other service charges without informing customers of the extra costs.
Dolapo Adedeji filed the complaint at the Competition and Consumer Protection Tribunal after he realised that his orders on Chowdeck cost 20% to 50% more than the actual cost if the items were bought directly from vendors.
When his order arrived, the food looked exactly like what he had seen in restaurants, with the same portions and packaging, but he had paid much more through the app.
According to his X post, Chowdeck charges vendors a commission ranging from 20% to 30%, depending on their subscription tier and promotional features, such as better search result placement.
Rather than absorbing these costs or disclosing them upfront, the platform allegedly adds them to menu prices. It then presents delivery and service fees as the primary additional charges that customers are required to pay.
Why Adedeji took Chowdeck to court
This isn’t just about one overpriced meal. Adedeji’s lawyers argue that Chowdeck’s pricing structure violates Nigeria’s Federal Competition and Consumer Protection Act by misleading customers about what they’re actually paying for.
The suit raises a straightforward question: should consumers bear the cost of platform-vendor commission agreements without being told? Adedeji says no.
His legal team claims that including these charges in menu prices and adding additional fees at checkout creates a misleading impression of costs, shifting business expenses onto customers who did not agree to cover them.
The lawsuit also contests Chowdeck’s policy of labelling platform and service fees as “non-refundable,” even when orders are cancelled or not delivered. It claims this practice violates consumer protection rules meant to prevent unfair contract terms.
What happens if Adedeji wins the suit
If the tribunal rules in favour of Adedeji, Chowdeck will need to change how it displays prices. The lawsuit requests that the platform clearly indicate that menu prices differ from in-store rates and that it show any additional markups before customers select items.
It also calls for the company to stop highlighting delivery fees as the main extra cost when the menu prices already include hidden platform charges.
Beyond Chowdeck, this case could establish a precedent for how food delivery platforms function in Nigeria. Jumia Food, Glovo, and other apps utilise similar commission structures, and a ruling in this context might compel the entire sector to reconsider pricing transparency.
Adedeji’s lawyer framed the lawsuit as a public interest case, not an attack on digital innovation. “Consumer rights only become real when someone insists on them,” the legal team wrote on X.
Chowdeck hasn’t responded to the allegations yet. But the matter is before a tribunal.
