Australian regulator seeks $19 mln penalty from Uber for misleading fares

After admitting to misleading consumers about ride fare estimates and cancellation penalties, Australia’s competition authority is suing Uber Technologies Inc (UBER.N) and seeking a A$26 million ($18.69 million) fine from the ride-hailing platform.

Uber confirmed to the Australian Competition and Consumer Commission (ACCC) on Tuesday that it advised customers they will be charged costs for canceling rides between December 2017 and September 2021, even if the cancellation was requested during its “free cancellation period.”

“Uber concedes it deceived Australian consumers for years and may have prompted some of them to choose not to cancel their journey after getting the cancellation warning, even though they were allowed to do so free of charge under Uber’s own policy,” said ACCC Chair Gina Cass-Gottlieb.

Uber also acknowledged to misrepresenting fare estimates for its Uber Taxi option, according to the ACCC, because its algorithm would nearly always exaggerate the range and the actual fare would be lower than the company’s cheapest estimate.

“Uber’s app’s deceptive information deprived users of the opportunity to make an informed decision about whether or not to take an Uber Taxi,” Cass-Gottlieb stated.

Uber claimed it had “worked to streamline our in-app notifications to make it clear exactly when cancellation charges will or will not apply, per occurrence, so that riders always have confidence” since the ACCC addressed the problem.

The ACCC and Uber are jointly seeking court judgments, including statements that the ride-hailing app violated Australian consumer law and penalties, according to the regulator.

Latest articles

‘Family badly affected’: Will Smith’s daughter Willow Smith on 2022 Oscars slap incident

In response to the controversy caused by her father Will Smith's slap row at the Oscars in 2022, singer Willow Smith broke her silence....

In Russia, Kia recalls 105,000 Rio cars

A probable airbag malfunction prompted Kia Corp.'s Russian unit to initiate a voluntary recall of more than 100,000 vehicles on Monday, according to a...

US: Democrats readies $430 billion bill on climate, drugs

A $430 billion climate change, healthcare, and tax measure that would help limit the carbon emissions that cause climate change and lower drug costs...

Covid quarantine stay reduced for travellers in Hong Kong

By reducing the COVID-19 hotel quarantine time for all arrivals from seven to three days, Hong Kong is taking another step toward gradually relaxing...

Related articles

Leave a reply

Please enter your comment!
Please enter your name here