Dubai has issued stringent new rules on online food delivery websites in an effort to eradicate the online concealed charges and bring out more transparency for the consumer. The framework, which was released by the Dubai Corporation of Consumer Protection and Fair Trade (DCCPFT) on Tuesday, September 2, has platforms to explicitly disaggregate all delivery and service fees.
The relocation, placed under the authority of Dubai Economy and Tourism (DET), will aim not only to boost business quality but also safeguard the consumer and generate more investments in the expanding online food delivery industry in the emirate. Any service charges, upcharges, or price modifications not notified to consumers can be considered incongruent with such guidelines.
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Clear Rules for Food Delivery Platforms
The DCCPFT provided certain transparency standards that need to be observed by companies now:
- Plain, clear, and easy-to-understand language has to be used in platforms.
- All disclosures must be noticeable and visible.
- Rules are effective in all digital channels: on websites, mobile applications, tablets, and any operating system.
- None of the information that can influence consumer decisions should be concealed or left out.
Notably, delivery websites and applications should show a cost breakdown until checkout and should include:
- Price of food items
- Delivery fees (with clarity if charges vary by location)
- Service or convenience fees
- Taxes and VAT
The guidelines note that post-payment, there should be no increase in charges that were not visible in the first place. Any additional fees, price increases, or surcharges that are imposed without prior notice would be considered non-compliant with such regulations.
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Guidelines on Marketing and Subscriptions
The framework also refers to marketing language and subscription models:
- “Exclusive” Deals: Platforms are only allowed to use the term when the offer is true, well-established, and platform-specific. False or ambiguous advertising is outlawed.
- Subscription Transparency: Sites with membership or subscription offers cannot transfer expenses to restaurants in the form of obfuscated fees like exaggerated commissions or masked service fees.
Boosting Consumer Confidence and Industry Growth
In the announcement, Ahmad Ali Moosa, the director of Fair Trade and Business Protection at DCCPFT, emphasized the significance of the sector:
The online food delivery market has been experiencing very positive development over the past years and we acknowledge the importance of the delivery platforms in enriching the overall development and innovation of the food and hospitality industry in Dubai.
The rules will help establish a more equitable and open digital marketplace in Dubai, which will build better customer trust and benefit restaurants and service providers.
Food delivery apps in Dubai now have to reveal all charges, be honest in their supposed exclusivity, and make subscription plans visible. This crackdown on the hidden charges is likely to bring more confidence to the consumers and build the perception that Dubai is a leader in honest trade.