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Colombian regulators, in order to supply the app Rappi in order to comply with law, commerce

BOGOTA, colombia (Reuters) – Colombia’s regulators on Thursday ordered a popular delivery app in Rappi in order to comply with the e-commerce law, said the firm has been providing services that go beyond the basics of contact between the customers and the suppliers.

FILE PHOTO: The logo of the Colombia’s on-demand delivery company, Rappi, it is to be seen in the provision of a bag-in-the-Mexico-City, Mexico, August 30, 2019. REUTERS/Henry Romero

The Superintendency of Industry and Trade, said that with the opening of an investigation by the app, which has been specializing in on-demand deliveries to local restaurants and grocery stores, after receiving hundreds of complaints from customers.

Rappi, providing customers with all products with the concert tickets will be delivered to their homes or offices, pay via the app or by cash.

The regulators said that the app will go beyond the facilitation of contact between the customers and the suppliers, and it was a “marketing supply chain” is subject to different rules.

The regulators have ordered the company to modify the apps’ terms and conditions, several clauses, including the request of the customer, to refuse some of the rights, terms and conditions, which could prevent them from getting out the exact change for the purchase, it may be in breach of Colombian law.

The decision is not subject to appeal, and the supervisors have been added.

Rappi, which was founded in the year 2015, in Columbia, did not respond to a request for comment.

The regulators also opened an investigation into the alleged violations are related to advertising and e-commerce. That study will look at the hundreds of complaints about the cost, which is different from that advertised, the failure to comply with any special offers, the cost of the canceled orders and other problems.

“In the event that the charges are proven, fines of 2,000 minimum legal wages may be granted,” the regulator said. A fine of that amount would be equivalent to nearly $500,000.

The service is also available in Brazil, Mexico, Argentina, Chile, Peru, Uruguay, and Costa Rica.

Rappi’s co-founder told Reuters last week that the company plans to nearly double the number of cities that are active at the end of the year, following a $1 billion injection from Japan’s SoftBank, that signals growing foreign interest in the region.

The deal May be created SoftBank is a majority owner in the start up. The app is now available in 55 cities and towns.

Reporting by Nelson Bocanegra; Writing by Julia Symmes Cobb; Editing by Dan Grebler

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