Uber hit with mammoth $21m fine for over-estimated cancellation fees

Uber has been hit with a mammoth $21 million after misleading customers about fare estimates and trip cancellation fees.

Uber has been fined a mammoth $21 million by the Federal Court after admitting it misled customers about fare estimates and trip cancellation fees.

The rideshare service’s penalty was delivered on Wednesday and was $5 million less than what was proposed by itself and the Australian Competition and Consumer Commission.

However, the court decided the penalty was excessive in the “unusual” circumstances.

Judge Michael Hugh O’Bryan said in a written ruling Uber “did (not) attempt to quantify the likely consequences for consumers” when showing cancellation fees.

Uber has been fined $21 million dollars by the Federal Court. Picture: NCA NewsWire / Sarah Matray

“The evidence showed that a very small percentage of consumers who selected the ‘Cancel Trip’ option and received an incorrect communication about a cancellation fee in fact altered their choice,” he said.

The impact trips were taken between December 2017 and September 2021 and the company has 30 days to pay the penalties.

Uber has been contacted for comment.

More to come.

Originally published as Uber hit with mammoth $21m fine for over-estimated cancellation fees