March 27, 2023

Australia: Uber had given this threat to the customers, now the court imposed a heavy fine

2 min read


Uber threatened customers with ride cancellation fees.
Now he will have to pay a fine of more than Rs 1 billion.
The court said – the company broke the consumer law by misleading the customers.

Sydney. Threatening ride cancellation fees to Uber in Australia has proved costly. It is reported that an Australian court has imposed a heavy fine on Uber Technologies Inc on Wednesday for this. The court has imposed a total fine of 21 million Australian dollars (about Rs 1,158,833,108) on Uber Technologies Inc. Uber was accused of threatening to charge a ride cancellation fee, which was never taken. Also, the company had increased the fare estimate on some rides. This was less than the amount the complainant was demanding.

According to the news agency Reuters, the court has said in its decision that the Australian branch of the US ride-sharing app maker has broken consumer law by misleading customers. Along with this, he has also warned the customers to cancel some rides between 2017 and 2021. Apart from this, till August 2020, the company had inflated the fare estimates using incorrect software algorithms. The court is fining Uber Technologies Inc for misleading customers and breaking consumer law.

It is known that this case against Uber was brought before the court by the Australian Competition and Consumer Commission (ACCC). Although the company had already agreed to a fine of 26 million. But O’Brien told the court that the evidence provided by both sides was ‘grossly insufficient’.

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Evidence given to the court showed that 0.5 percent of Uber customers were forced into rides due to threats of ride cancellation fees. If there was no threat of cancellation fee, these people would not have been forced to go on the ride. The judge said that more than 89 percent of the times, Uber Taxi inflated the fare estimates. But less than 1 percent of Uber’s total riders used the service. At present, there is no comment from Uber and ACCC on this matter.

Tags: Australia, Uber

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