Today I was on Jeremy Vine on BBC Radio 2 discussing Just Eat and failures in its automatic refund system.
The BBC previously reported ‘Cold ice cream complaints have cost me hundreds’ where a small business owner spoke about losing more than £1000 to Just Eat. Dishonest customers are claiming for refunds to which they are not entitled. They have even said the ice cream was delivered cold and got a refund!
Innocent victims of Just Eat systems
The BBC reports:
Andrea Blow, who runs Scunthorpe-based Cakes by Andrea, said Just Eat had now agreed to pay her about £300 – but she still faces a shortfall of hundreds of pounds.”
She even cites one customer who had submitted 44 different fraudulent refund claims through Just Eat, alleging that cakes were never delivered.
Andrea is clearly out of pocket by a large amount, particularly for a small business. She is not alone. The BBC also reports that Dan Stamp, who runs the eatery The Smoking Goat, says he lost thousands of pounds over the last five years due to similar false claims.
Businesses that use their own drivers are not able to use some features of the Just Eat system or take pictures of the delivery. It’s very difficult for them to prove delivery due to the poor system that Just Eat provides. If they try to refuse orders from the fraudsters (for that is what they are) their Just Eat “Legend” score goes down.
Just East – broken system
Food delivery platforms like Just Eat aim to make ordering and refunding simple but it seems that just isn’t the case. When refunds are issued automatically without verification, it creates a loophole that dishonest customers can, and are, exploiting.
Paradoxically, consumers are telling me that when they raise genuine complaints Just Eat say they won’t refund if an establishment supplies their own delivery drivers
And others who have complained repeatedly risk account bans or restrictions, leaving them unfairly penalized for exercising their rights.
A spokesperson for Just Eat told the BBC “We will always investigate claims and, where appropriate, reimburse restaurant partners for any fraudulent activity.”
Is automation and “AI” to blame?
Many of these problems stem from over-reliance on automated systems and “AI” algorithms. We see this already on other platforms, such as the fashion reselling site, Vinted (See Vinted your consumer rights when buying and selling). Refund decisions are being made without human review, leaving businesses exposed to fraud and consumers at risk of losing rights if they are seen as “too frequent” complainers.
In a bid to save money, Just Eat has become the latest organisation to fail in its poor implementation of systems and reliance on “AI”.
Consumers should have their complaints addressed fairly but businesses also deserve protection from fraudulent claims! Platforms need clear processes that investigate disputes thoroughly, notify businesses immediately, and ensure both consumers and merchants are treated equitably.
Recommendations for Platforms
To address these issues and restore trust, delivery platforms should consider the following:
- Human oversight: Ensure that refund requests are reviewed by real people before automatic approval, particularly for repeated claims.
- Real-time notifications: Notify businesses immediately when a refund request is made, so they can respond promptly.
- Transparent dispute processes: Clearly communicate how disputes are handled and give businesses the ability to provide evidence and take notice of it!
- Protection for frequent complainants: Avoid penalising customers who make genuine complaints lots of times by reviewing accounts manually.
- Data-driven fraud detection: Use AI more responsibly to flag suspicious patterns, but always combine with human judgment to prevent unfair decisions.
How to complain about genuine issues with food deliveries
How to complain about food – restaurants/hotels, fast food & shops
@thecomplainingcow How to complain about a fast food delivery. How to complain about the wrong order. How to complain about the wrong food. #deliveries #ConsumerRights #foodservice #Deliveroo #Uber #Refund #Refunds #MoneyTipsAndTricks
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