- Uber Technologies, Inc (NYSE:UBER) could face penalties of up to $19 million (AUD26 million) as the Australian competition regulator finds it guilty of misleading riders.
- The Australian Competition and Consumer Commission said Uber admitted that between December 2017 and September 2021, it warned consumers they would be charged fees for canceling rides during its "free cancellation period."
- Uber admitted misleading Australian users for several years, possibly influencing some of them not to cancel their ride after receiving the cancellation warning, despite being entitled to cancel free of charge under Uber's policy.
- The ACCC also said Uber admitted to having falsely represented fare estimates for its Uber Taxi option. Its algorithm would almost always inflate the range, and the actual fare would be lower than the company's cheapest estimate.
- "Since the ACCC raised this, we have worked to streamline our in-app messages to make it clear exactly when cancellation charges will or will not apply, per occasion, so that riders always have certainty," Reuters quoted Uber. The regulator didn't allege Uber was charging cancellation fees at times when no fee should have applied, Uber said.
- Price Action: UBER shares traded lower by 1.11% at $32.08 in the premarket on the last check Tuesday.
