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This Monday, the Superintendency of Industry and Commerce (SIC) announced that the Rappi SAS platform was imposed its maximum sanction of 2 thousand current legal minimum wages, which is equivalent to $ 1,755,606,000 for breaching consumer protection regulations.
This is not the first time that the application has been indicated by the SIC of not complying with the regulations. Since last year, The Superindustry ordered Rappi to comply with the electronic commerce parameters and, precisely, this Monday it imposed an additional penalty of 702,242,400 pesos for not complying with that first decision.
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Among the arguments of the agency to impose the millionaire fine on the platform is to violate the rules and not offer users minimal information, public price data, have misleading advertising, abusive clauses and failure to comply with legal obligations in reference to distance sales and electronic commerceor, among others.
The investigation
The process against Rappi began with hundreds of complaints, claims and accusations filed against the platform, which led to an investigation and a statement of objections at the end of August 2019.
The SIC indicated at that time that the application had to comply with electronic commerce regulations since it concluded that this was a provider or vendor of goods and services through electronic means and was not a contact portal as Rappi had alleged.
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For this, the Superintendency specified that the platform not only fulfills the “function of contacting Rappitenderos, consumers and business partners, but is also part of the marketing chain, even indirectly, of the goods and services it offers to through its platform ”.
The SIC opened the investigation for hundreds of complaints, requirements and denunciations against Rappi in the country.
César Melgarejo / THE TIME
Likewise, The SIC also called for the terms and conditions of use of the application by consumers, indicating that they could be violating the rules of the Consumer Statute, since Rappi limited the supplier’s responsibility with respect to “the obligations that correspond to it by law”, as well as “restricting the possibility of enforcing the guarantees and the delivery of exact returns “And presume” the manifestation of the consumer’s will. “
For this reason, the Superintendency of Industry and Commerce ordered Rappi last year to make an adjustment to the clauses referring to that document of terms and conditions.
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By last, The investigation also led to the filing of charges by the SIC against the application for violating consumer protection regulations in nine aspects specifically: information, misleading advertising, promotions and offers, public price information, abusive clauses, right of withdrawal, payment reversal, quality and electronic commerce.
The increase in the value of the products displayed was foreseen by up to 10% and it was also proven that it obtains a profit derived from the extra cost of the price of the same
What was sanctioned?
To impose the fine on Monday, the SIC assured that through the investigation it was confirmed that Rappi is not a contact portal, but a provider or vendor of goods and services through electronic means.
Since the platform receives income from transactions and consumption relationships derived within the application, the payment made by the user is received by Rappi and it is distributed weekly to its commercial allies, “Discounting, among others, the value for use and rental of the platform, compensation for delays, erroneous incomplete orders”, among others.
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Likewise, “Receives income for the services that it offers without the intervention of the allies, in services such as ‘Rappi antojo’, ‘Rappi cash’ and ‘RappiPrime’ and it also has its own payment methods such as ‘Rappicréditos’ and ‘RappiPay’.
The SIC noted that Rappi is an electronic commerce platform.
John Vizcaino / AFP
In turn, it issues its own advertising and that of its allies, has the “power to modify public information on prices of goods and services”, it can “unilaterally modify the prices of products”, where in some cases ” the increase in the value of the products exhibited by up to 10% and it was also proven that it obtains a profit derived from the extra cost of the price of the same ”. So it was shown that this profit was in the calculations of the platform.
In reference to the Rappitenderos, the SIC determined that the platform “subrogates in the patrimonial rights” reason why it becomes “in creditor of the consumers and reserves the right to directly revoke and cancel the orders requested by users ”.
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When this was verified, that Rappi is a provider of goods and services through electronic commerce, the SIC assured that the platform failed to comply with seven aspects that resulted in its millionaire sanction.
Which are not indicating in a “sufficient, precise and truthful way the restrictions to access promotions and offers”, not providing clearly “the information related to the prices displayed visually on your electronic commerce platform”, not offering the information that corresponds “to the correct returns, since by including the return of returns in ‘RappiCréditos’ in its business model and not in the currency of legal tender, he was obliged to sufficiently inform said provision ”.
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Further, “included abusive clauses that limited their liability, which implied waiver of consumer rights, presumed the expression of their will ”, in turn, it did not previously indicate to its users that they had rights of withdrawal and reversal of the payment.
The SIC also pointed out that Rappi did not guarantee the right of consumers on the quality of the product and service, regarding issues such as delays in delivery, cancellations, non-return of money, delivery of products other than those requested, unjustified charges, among others.
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Lastly, regarding the order of August last year, the SIC found that the application has not complied with five of the seven orders that were imposed on it, so gave Rappi 30 business days to comply with the order or it may be included in a new administrative conviction procedure.
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