Consumer complaints:

The SIC (for its acronym in spanish) mentioned that consumers presented a lot of complaints about different behaviors of Rappi. Most of them were about:

  1. Payments different to those announced in the app.
  2. The infringement of discounts and special offers.
  3. Refunds of money through “rappicréditos”.
  4. Charging payments on cancelled orders.
  5. Charging orders without receiving it.
  6. Breach on warranty.
  7. Delay on the delivery service.
  8. The delivery of products different to the ones ordered.
  9. The double charge for a same order and
  10. Credit Card Discounts without authorization.

These are some of the behaviors heavily criticized by the consumers that led the SIC to start the administrative investigation that concluded in the statement of objections here discussed.

The administrative order:

Additionally to the complaints presented by the consumers, the Superintendence developed a thorough analysis of the nature of the business model that Rappi has now-a-days, that led them to conclude that they are not a mere contact portal between consumers and those who deliver or between consumers and commercial allies, because, even indirectly, they are a part of the marketing chain, becoming a supplier of goods and services through electronic platforms.

This analysis is fundamental, because, elucidating the business model of Rappi -that was uncertain and highly debated until now- it is possible to determine that they must comply to the duties and responsibilities contained in the Statute of the Consumer (Law 1480 of 2011). Due to this they released the administrative order against Rappi in which they urge Rappi to comply with the rules and regulations of electronic commerce.

The measures that Rappi must assume:

The superintendence particularly urged Rappi, with the objective of protecting consumers to:

(i) Indicate in their app how can consumers exercise their right to retract from their order and the reversion of payment in the transactions made by electronic commerce.

(ii) Include in the app and in the web page a visible link that allows consumers to enter the web page of the Superintendence of Industry and Commerce.

(iii) Create in the platform mechanisms in order to receive complaints and claims.

(iv) Adjust the clauses, terms and conditions and every other document that regulates aspects in relation with the commercialization of goods and services through their platform in order for them to comply with the Law 1480 of 2011.

(v) Incorporate in their commercial advertising the information about terms and conditions

(vi) Inform in the platform the total price of products, including taxes and total costs that the consumer must pay in relation with the announced prices, promotions and offers and eliminating the possibility of modifying it after the service is accepted.

Statement of Objections:

The statement of objections that the Superintendence formulated for the alleged violation of the laws of consumer protection, aim to reduce the complaints and strengthen consumer protection in the future in relation with this app and the services it provides, specially regarding behaviors related with:

(i) Information.

(ii) Misleading advertising.

(iii) Discounts and special offers.

(iv) Public information of prices.

(v) Abusive clauses.

(vi) The right to retract.

(vii) The right to reverse payments.

(viii) Validity.

(ix) Electronic commerce.

Due to all of this, Rappi has 30 days to certify that they comply with the administrative order, and in case of not being complying, subsequent fines and penalties will be imposed up to 1000 minimum wages.

The importance of this Statement of Objections:

This administrative investigation and statement of objections are very important for Rappi and for every business with similar business structures, as it makes them comply with current regulations of consumer protection even when they try to avoid them by arguing they are mere contact portals between consumers and those who deliver when they actually have a bigger incidence in those commercial relationships.