Following food safety lapses at dark stores operated by quick commerce platforms, brands are renegotiating and tightening their contract terms to ensure compliance with food safety regulations. As per Dheeraj Nair, partner at JSA Advocates & Solicitors, brands are revising contracts to force accountability through precise compliance standards and legal safeguards, incorporating robust indemnity clauses and seeking audit rights to protect themselves from losses or reputational harm. This shift reflects the growing importance of quick commerce in India, with the market expected to triple between 2024 and 2027. Brands and platforms will increasingly scrutinize representations and warranties in their agreements to ensure compliance with FSSAI regulations and maintain requisite licenses.
The article was authored by Dheeraj Nair (Partner), published in The Times of India.
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Dheeraj is a Partner with JSA since 2009. Dheeraj has over two decades of experience advising and representing clients on complex arbitrations, litigations and regulatory proceedings.