Questions & Answers
Increasing the price of restaurant's food items on third party platforms
As a restaurant, we have the same price for our food items on dine-in, delivery menu, our website, and all other social media platforms like Google, FB...etc., wherever we are selling directly.
But when we are selling through a 3rd party platform, they charge a minimum 25% to 30% commission, and that is incurring losses. We want to keep our prices 20% higher on 3rd party platforms to pay for the margin.
Salespeople from these 3rd party platforms claim that it is not allowed by the UAE government under consumer protection law; Federal Law No. (24) of 2006 On Consumer Protection.
However, I read the law myself and it doesn't mention anywhere that a restaurant can't have a different price on their own website /dine-in menu via 3rd party platform.
A lot of other restaurants have different prices on their own website and a higher price on a 3rd party platform.
Can you please give us legal advice if we can have a 20% higher price on 3rd party online platforms?
Thanks!
Hi,
For the purposes of consistency, you can maintain the same prices across all menus (delivery, dine-in, and third party online platforms).
However, since you wish to include a 20% margin on the third-party online platform, you can have an internal agreement between your restaurant and the third party.
The agreement can include items like the additional margin, expenses and the respective obligations of each party.
For further information, contact us via email.
Hello,
Generally, increasing your prices on third-party platforms that charge you commission rates will not render you legally liable.
As a restaurant owner, you have the right to control your prices, as there is still no law regulating this for this type of market.
Ultimately, it will be the consumer's choice to either order from your website or from other third-party platforms.
However, if someone decides to make a complaint through Consumer Protection, then, generally, the Consumer Protection will speak with both parties, yourself and the complainant.
They will try to understand the reason why you did this and decide whether you are in the wrong, potentially asking you to return the marginal rate to the consumer, or that you had the right to do what you did.
Should you require further tailored substantive legal advice, kindly contact my firm via phone or email.
Regards,
Ludmila
We should have a meeting to understand your requirements and discuss your needs and your website and to see the agreement between you and the other parties then we ll give the proper advice accordingly.
Please contact me to have a consultation meeting.
Regards,
Ayman
Technically, we have to go by consumer protection rights, IT Laws in the UAE, civil transactions law, and the fact of the story.
If you can come for a meeting, then we can discuss and provide you with solutions of how to legally handle the scenario.
You may contact us on phone or email.
