Uber has admitted to misleading Australian customers over cancellation fee warnings and taxi fare estimates, facing a $26m fine. The ride-share company acknowledged engaging in deceptive conduct following an investigation by the Australian Competition and Consumer Commission (ACCC).
Between December 2017 and September 2021, UberX, Uber Premier, and Uber Comfort users were shown a warning when cancelling a ride within the five-minute free cancellation window, stating they 'may be charged a small fee since your driver is already on their way'. The ACCC said over 2 million Australians saw the misleading message, which may have deterred some from cancelling.
Uber has since fixed the message to clarify that no fee applies within the free cancellation period. The ACCC chair Gina Cass-Gottlieb stated: 'Uber admits it misled Australian users for a number of years, and may have caused some of them to decide not to cancel their ride after receiving the cancellation warning.'
Additionally, the ACCC is taking Uber to court over its Uber Taxi option in Sydney, which allegedly overinflated estimated costs, making the actual fare cheaper than the lowest estimate. The option was removed in August 2020. Cass-Gottlieb emphasised the need for digital platforms to monitor algorithm accuracy and statements influencing consumer choices.
Uber said in a blog post it had 'worked to streamline' its in-app messages and noted that most users still cancelled without charge. The company stated: 'We are committed to continually raising the bar – for ourselves, our industry, and most importantly for the people who use our services.' Uber is not contesting the court action, and both parties have agreed to seek a $26m penalty, subject to court approval.
