From shopping to ordering food, the internet is used in every aspect. In addition, ordering any type of food from food apps has also become easy. In the fast-growing world, people are depending on digital activities. Moreover, Zomato, a well-recognized food delivery app, delivers the food to the consumer’s doorstep. The current data reveals that the market scale of Zomato has increased a lot. But it can lead to several consequences, like legal penalties, Zomato unlisting, & more that we will discuss through this blog.
Many food businesses are registering with Zomato to increase market credibility. But many people are unaware that to register with Zomato, the FSSAI license is required. An invalid FSSAI certificate creates illegal circumstances to operate a Zomato without FSSAI License. Let’s check out why we need a food license to register with Zomato and the types of penalties faced by the industry, including the registration process,, etc.
5 Consequences of Operating a Zomato without a License:
- Legal Penalties
The operators, like manufacturers, sellers, or importers, can face a penalty of Rs 5 lakh and imprisonment for running a food business in India. If a person monitors a food business with a valid FSSAI food license, it can be the result of a violation of the law. Furthermore, the operator is stuck in legal proceedings, which can result in imprisonment or fines.
- Business Closure
There are many cases registered regarding the business closure. The officials of Zomato, including FSSAI, shut down food businesses for running without a food license.
- Zomato Delisting
The guidelines of Zomato ensure that the correct documentation, including a food license, is required to be listed on the platform for visibility. Without the certificate, it can lead to delisting from the food delivery platform, Zomato.
- Reputation Damage
Zomato, as well as FSSAI, can impose fines for handling a food business without a food certificate. Not having a valid certificate damages the business image.
- Potential for health & safety violations
Invalid certificates increase the potential health risk for customers. Before presenting the food material in the market, the officials ensure the quality of the food.
What is the penalty for not having an FSSAI license?
In India, every small to big food business is required to have a valid certificate that creates an image of a legal connection. The food businesses that register with food delivery platforms also register with a valid FSSAI certificate. Meanwhile, monitoring the food business without a required certificate can result in severe consequences. The penalty adds fines, food business closure, or legal action. Therefore, in the terms and conditions, Zomato strictly mentions FSSAI compliance. In addition, the platform can also block the business permanently if the necessary certificate is not provided.
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Is a FSSAI license mandatory for Zomato?
A food business operator can suffer from various consequences if it registers with Zomato without a valid certificate. Any type and scale of food business needs a food certificate to ensure that the food meets all needs of safety and quality standards.
Therefore, to prevent the food business from any suspension or penalty, apply for an FSSAI license online. Overall, registering for a food certificate with Zomato is a mandatory process.
Key points to learn the importance:
- Legal protection: Having a valid food license protects the food business’s reputation and also eliminates legal risk.
- Consumer Safety: The food business owners obtain the food licenses after the checkout and quality inspection. The process demonstrates that the food follows the safety grade, reducing the risk of any type of illness.
- Compliance with regulations: Under the Food Safety and Standards Regulations, 2011, the food business owners need to follow the introduced rules and regulations of Zomato.
- Partner platforms: The FSSAI food license works as a tool for Zomato that helps in the verification process.
5. Compulsory requirement: Obtaining the food certificate is a mandatory requirement, as stated by Zomato regulations.
What is required to register on Zomato?
The massive utilization of social media activities is helping in building the marketability of various businesses. As per the current trend, the internet is one of the best ways to connect with consumers easily. Even the delivery of the food becomes smooth. Apart from internet activities, various food delivery platforms, including Zomato, offer opportunities to multiple food businesses. The food delivery platforms have become the base to reach potential consumers. Even small food businesses are also linking with Zomato to uplift their business in the market.
Before registering with a food delivery platform, the applicant needs to fulfil the requirements. To register with Zomato, the applicant must need to provide important details such as documents and all details of the food business. If, somehow, the operator fails to provide the required details, then it will not allow linking with the delivery platform.
The required documents to link on Zomato:-
- Before signing up for Zomato, the operators need to gain knowledge of the application process and its benefits. Hiring an agent can be the best way to prevent illegal risk, or an applicant can hire a food license consultant.
- The applicant must provide a valid Food Safety and Standards Authority of India license to register on Zomato.
- The major documents are a food certificate, GST details, a PAN card, and food business details, including bank account details.
- Zomato also demands to submit the photos of the restaurant or dishes for proof purposes.
- Private Limited, Partnership, or LLP are other required FosCos registration details that are provided to Zomato.
- Zomato registration fees are not required to list on their platform. Yes, the platform does not charge any fee; however, it charges a commission on each order.
- As per the data, the major commission charge range varies between 15% and 25% per order.
What are the guidelines on Zomato for food operators?
Following the rules and regulations of any platform reduces blocking risk and also enhances the company’s image. Every food delivery platform has its guidelines, which are followed by every operator who registers their food business. The mandatory laws and regulations offered by Zomato are to offer valid information and reviews to meet the needs of customers.
Here is a more detailed breakdown:-
Accuracy and Compliance
Zomato asked to submit the FSSAI food license to register on its platform. The license gives positive feedback regarding food quality and all required standards.
The individual or representatives must give truthful and up-to-date documents, including their personal information and the food business. The information helps the platform manage activity.
The food operators need to demonstrate the rules and regulations introduced by the platform. In addition, Zomato is against the fraudsters and prohibits their activities.
Review of Customers
Customers are those for whom the platform and the food business owners are working. Therefore, their review and the experience with Opeters matter a lot for Zomato. The platform monitors the reviews of customers, which help to understand the nature of the food provider.
The platform is required for a clear image menu of food businesses. However, listing the same menu items and images from the same location can result in confusion among consumers.
Food rescue initiative and payment issue
The technical working process of Zomato is too fast. In addition, during the cancellation of food, the technical staff offers the same delivery within a certain radius. This helps to prevent the wastage of food.
On every delivery, the platform charges a commission. However, the commission charges are based on the type of delivery. Zomato charges a commission on each delivery, from food operators.
Zomato ensures compliance
To confirm the presence of a register for industry, Zomato reviews the valid documents, such as GST registration, FSSAI license, and many more.
The food operators who do not follow the guidelines, Zomato takes action against by either removing the listing or suspending the account from the platform.
What is the need for a Food License Consultant?
Various new food businesses face the issues that increase the risk factors. However, in this situation, a food license consultant works as a mediator to connect with the legal path. Hiring a consultant for an FSSAI food license or registering on Zomato eliminates the factor of complex regulations. They help to give the knowledge regarding food safety standards and the process of linking on Zomato, including its benefits.
Taking the consultancy decreases the time wasted and provides a clear and smooth path for the business. The new food industry, or those who are dealing with complex licensing and Zomato registration procedures, can hire an FSSAI license consultant.
Overall, the food license consultant helps to navigate complex regulations, helps in preparing the valid and required documents, ensures compliance, and also saves effort and time, and much more.
Final Thoughts
The summary of the report claims that not having the valid documents, including the FSSAI food license to register on Zomato, can cause legal risk. The risks can be a penalty or an industry shutdown. The valid license and details help to monitor the food business. To operate any food business on any type of food delivery platform, a valid food license is required.