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



strong points

Uber has threatened its customers with trip cancellation fees.
From now on, he will have to pay a fine of more than Rs 1 billion.
The court said the company violated consumer law by misleading customers.

Sidney. Threatening Uber’s trip cancellation fees in Australia has proven costly. It is reported that an Australian court on Wednesday imposed a heavy fine on Uber Technologies Inc for this. The court imposed a total fine of A$21 million (approximately Rs 1,158,833,108) on Uber Technologies Inc. Uber was accused of threatening to charge a ride cancellation fee, which was never collected. In addition, the company had increased the fare estimate for some routes. This amount was lower than the amount claimed by the plaintiff.

According to Reuters news agency, the court said in its ruling that the Australian arm of the US ride-hailing app maker breached consumer law by misleading customers. Along with this, it also warned customers to cancel some rides between 2017 and 2021. Apart from this, until August 2020, the company had inflated fare estimates using incorrect software algorithms. Court fines Uber Technologies Inc for misleading customers and violating consumer law.

This case against Uber is known to have been brought to court by the Australian Competition and Consumer Commission (ACCC). Although the company has already accepted 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 provided to the court showed that 0.5% of Uber customers were coerced into taking rides due to threats of ride cancellation fees. If there hadn’t been the threat of cancellation fees, these people wouldn’t have had to make the trip. The judge said more than 89% of the times Uber Taxi inflates fare estimates. But less than 1% of Uber’s total ridership used the service. At this time, Uber and the ACCC have not commented on this.

Keywords: Australia, Uber