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Zepto Fined ₹57,000 for Overcharging, Misleading Discounts by Telangana Commission

· · 3 min read

Zepto has been ordered to pay ₹57,000 by a Telangana consumer commission for overcharging a Hyderabad customer above MRP and then applying misleading discounts. The quick-commerce platform was found guilty of unfair trade practices.

A consumer commission in Telangana has imposed a significant penalty of ₹57,000 on quick-commerce platform Zepto after finding it guilty of overcharging customers and engaging in unfair trade practices. The Ranga Reddy District Consumer Disputes Redressal Commission ruled that Zepto charged a Hyderabad customer ₹34 more than the Maximum Retail Price (MRP) on grocery products and then displayed misleading discounts on these inflated prices.

Details of the Complaint and Ruling

The order, issued on October 13, 2026, stemmed from a complaint filed by K Shiva Ganesh, a 35-year-old advocate from Uppal, Hyderabad. Mr. Ganesh reported that on September 28, 2023, he ordered tender jackfruit and MTR 3 Minute Poha through the Zepto app, paying a total of ₹293, which included ₹5 in handling charges.

His complaint alleged that the Zepto application showed prices higher than the printed MRP for the items and subsequently applied discounts to these artificially raised figures. This practice created a false impression of savings for the consumer, where in reality, products were being sold above their legal maximum price.

Zepto's Defense and Commission's Rejection

In its defense, Zepto claimed that the pricing discrepancy was merely an unintended technical or typing error. However, the commission firmly rejected this explanation. It observed that selling groceries above their printed MRP, while simultaneously advertising discounts on the higher price, constituted misleading and unfair trade conduct under the Consumer Protection Act, 2019.

The commission also took into account the time and effort the complainant had to expend to pursue legal remedies, factoring this into the compensation awarded for the inconvenience caused.

Breakdown of the Penalty

The commission partly allowed the complaint, issuing directions under Section 39(1)(g) of the Consumer Protection Act, 2019. Zepto has been given 45 days to comply with the order. The total penalty of ₹57,000 is broken down as follows:

  • Compensation to the complainant: ₹2,000
  • Litigation expenses: ₹5,000
  • Deposit in Consumer Legal Aid Account: ₹50,000

While the complainant had initially sought ₹5 lakh in compensation and ₹50,000 for litigation costs, the commission awarded a smaller, yet significant, amount.

Broader Implications for Quick-Commerce

Beyond the monetary relief, the commission explicitly directed Zepto and other involved parties to cease this unfair or restrictive trade practice and ensure it is not repeated. This ruling carries substantial weight for other quick-commerce platforms, reinforcing that simply displaying a discount on a price that is already above MRP does not legitimize the violation.

This case emerges amidst increasing regulatory scrutiny of alleged “drip pricing” and MRP overcharging practices within India’s rapidly expanding quick-commerce sector. The Central Consumer Protection Authority had previously issued a notice to Zepto’s parent entity regarding similar allegations in June 2025, highlighting an ongoing industry-wide issue.

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