Uber has been slapped with a 26 million dollar fine
The ride-share app has admitted its mislead customers in regards to the “free cancellation” warnings in Australia.
The ACCC from 2017 to late last year, Uber’s app was actually displaying a misleading cancellation warning, misleading Australian users for years.
This admission was the result of an investigation by the Australian Competition and Consumer Commission (ACCC), which is suing Uber in the Federal Court.
“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, even though they were entitled to cancel, free of charge, under Uber’s own policy,” ACCC Chair Gina Cass-Gottlieb said.
Consumers rely on apps to provide accurate information and this is shining the spotlight on Digital platforms like Uber that influence consumer behaviour.
$26 million is on the line, we’ll know more when the case goes to court.
“Uber admits its conduct misled users about the likely cost of the taxi option, and that it did not monitor the algorithm used to generate these estimates to ensure it was accurate,” Ms Cass-Gottlieb said.
“Consumers rely on apps to provide accurate information, and the misleading information on Uber’s app deprived consumers of a chance to make an informed decision about whether or not to choose the Uber Taxi option.
“Digital platforms like Uber need to take adequate measures to monitor the accuracy of their algorithms and the accuracy of statements they make, which may affect what service consumers choose.
“This is particularly important as online businesses often carefully design their user interfaces to influence consumer behaviour.”
