FHRAI accuses Zomato, Swiggy of data misuse, seeks commerce ministry action

 The letter raised objections to Zomato and Swiggy's entry into quick food delivery services through their private-label brands, Bistro and Snacc.

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FHRAI accuses Zomato, Swiggy of data misuse, seeks commerce ministry action
The Federation of Hotel & Restaurant Associations of India (FHRAI) has written to the Commerce Ministry, seeking an urgent meeting to address concerns over data misuse and private labelling by food aggregators Zomato and Swiggy.
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 The letter raised objections to Zomato and Swiggy's entry into quick food delivery services through their private-label brands, Bistro and Snacc.

The association highlighted several issues, including violations of marketplace neutrality, misuse of proprietary restaurant data, copyright and intellectual property breaches, consumer masking, and breach of assurances.

The FHRAI has urged the ministry to intervene and ensure regulatory oversight, promote transparent practices, and implement data usage regulations while increasing consumer awareness.

 The association also demanded that food aggregators be prohibited from competing with their restaurant partners through private labels.

It called for full disclosure of private-label products, clarity on their differentiation from restaurant offerings, and measures to prevent misuse of proprietary restaurant data for competitive advantage.

Established in 1955, the FHRAI represents over 60,000 hotels and 500,000 restaurants across India.

 The National Restaurant Association of India (NRAI) is also exploring legal options and may approach the Competition Commission of India (CCI) over concerns such as consumer data masking, private labelling, and abuse of dominant market position.

 Meanwhile, Blinkit co-founder Albinder Dhindsa recently stated on social media that Bistro operates as a standalone team and app, with no Zomato restaurant data used in its development.

 However, both FHRAI and NRAI expressed scepticism, asserting that these instant food delivery services remain subsidiaries of the same parent companies.

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