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Zomato Drops Price Parity Clause After Restaurant Backlash and Unused Mystery Shopping

Business
Published on 24 April 2026
Zomato Drops Price Parity Clause After Restaurant Backlash and Unused Mystery Shopping

A clause allowing hefty fines was reportedly never enforced

Zomato has withdrawn a contract term that required restaurants to match dine-in and website prices to its platform rates, Reuters first reported. The clause also allowed Zomato to impose fines up to three times the price difference and investigate via complaints or “mystery shopping,” though sources say it was never enforced. The move follows ongoing commission-model discussions amid intensifying competition.

  • Zomato removed the price parity clause from restaurant contracts
  • The clause threatened 3x fines for pricing differences
  • Investigations via complaints or “mystery shopping” were cited
  • Restaurant partners previously opposed the restriction on pricing freedom
Read the full story at Inc42

This summarization was done by Beige for a story published on Inc42Inc42

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