Colombia watchdog fines Rappi for double charges, lax liquor rules

Kitco Media
By Reuters
Published:
Updated:
Reuters
BOGOTA, March 21 (Reuters) - Colombia's consumer watchdog on Tuesday ruled in favour of fining Latin American delivery app Rappi of 1.245 billion Colombian pesos (around $260,000) for failed deliveries, double charging customers and allowing alcohol to be sent to minors. The decision follows an appeal from the SoftBank-backed startup, which surged into unicorn status in 2018. "It was found that Rappi SAS violated consumer protection regulations related to quality of service by generating double charges to consumers, breaches in delivery and order cancellations," the SIC watchdog said in a statement. It added that Rappi "did not implement the possible measures to verify the age of consumers at the time of delivery of products that are harmful to health, such as alcoholic beverages." Rappi did not immediately respond to a request for comment. The Bogota-based delivery service, which operates in nine countries across Latin America, last year won regulatory approval to operate as a digital bank in Colombia. Its founders have also floated the idea of preparing a public listing. ($1 = 4,801.3100 Colombian pesos) (Reporting by Luis Jaime Acosta and Nelson Bocanegra; Writing by Sarah Morland Editing by Marguerita Choy)

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.