A lawsuit filed at Nigeria’s Competition and Consumer Protection Tribunal has placed food delivery platform Chowdeck under scrutiny, raising questions about how clearly it communicates pricing to customers.
The case, brought in Abuja by Dolapo Adedeji, accuses the fast-growing company of inflating menu prices without properly informing users that the listed costs may already include hidden markups.
According to the claimant, a meal ordered through Chowdeck was significantly more expensive than the same item purchased directly at the restaurant. The customer initially assumed the higher price reflected a larger portion or better packaging. However, when the order arrived, it reportedly appeared identical to what is sold in-store.
The suit further alleges that some restaurant vendors disclosed that Chowdeck controls pricing on its platform, rather than allowing restaurants to independently set their own rates. Certain menu items were allegedly marked up by 25 to 50 per cent, even before delivery and service charges were added.
If the Tribunal finds that these practices amount to misleading representation or unfair trade conduct under the Federal Competition and Consumer Protection Act (FCCPA) 2018, the implications could be far-reaching.
The claimant is seeking:
- Clear disclosure of embedded markups
- Refunds for alleged excess charges
- A declaration that some non-refundable fees are unfair
Beyond compensation, the case could force delivery platforms to be more transparent about how their prices are structured.
Why it matters
Price differences between restaurant menus and delivery apps are common worldwide. Many restaurants raise app prices to offset platform commissions, which typically range between 15 and 30 per cent. In Nigeria’s tight-margin food industry, those costs are often passed on to customers.
The key issue before the Tribunal is not simply whether prices are higher, but whether customers are clearly told why.
Founded in 2021, Chowdeck has grown rapidly into one of Nigeria’s leading quick-commerce platforms and recently expanded into Ghana. While the company has been praised for its operational efficiency and reportedly strong rider pay, pricing concerns have surfaced occasionally.
Legal experts note that the FCCPA predates the rise of app-based food delivery in Nigeria. As a result, the Tribunal’s interpretation could set an important precedent for how digital platforms disclose pricing nationwide.
At stake is more than one company’s policy — it is the broader balance between platform profitability, restaurant survival, and consumer transparency in Nigeria’s expanding tech ecosystem.
