Uber has been fined $21 million for misleading Australian customers

Uber has been fined $21 million by the Australian Federal Court for misleading customers over cancellation fees and making false claims on its app.

The penalty comes after the Australian Competition & Consumer Commission (ACCC) filed the proceedings against Uber in April.

The context

The ACCC claimed Uber had sent misleading cancellation fees to customers, and false price estimations for its discontinued ‘Uber Taxi’ option.

Uber accepted that its actions breached Australian law, and with the ACCC, proposed a $26 million penalty for their actions.

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The verdict

The proposed penalty agreed by both parties was not imposed by the Court.

In his reasons for the judgment, Justice Michael O’Bryan said there was an “inadequate” amount of evidence that could support a $26 million penalty being issued.

Uber was also ordered to pay the ACCC $200,000 for legal costs.