Justice served: Court slaps Uber with Rs 10,000 penalty for overcharging customer

A Chandigarh resident, Ashwani Prashar, was in for a shock when he was billed Rs 1,334 for a mere 8.83 KM ride with Uber on August 6, 2021. The Consumer Disputes Redressal Commission of Chandigarh stepped in after Mr Prashar's complaint, ordering Uber to compensate him with Rs 10,000 and cover legal expenses with an additional Rs 10,000.

According to media reports, Mr Prashar recounted his ordeal of being charged an exorbitant amount for a short journey that lasted only 15 minutes, from AG Colony, Audit Phool Colony, to Sector 48-B, Chandigarh. Despite reaching out to Uber through customer chats and emails, he received no satisfactory response.

Mental distress and harassment for customer

Uber explained that the initial fare displayed to Mr. Prashar was Rs 359, but subsequent route changes during the trip escalated the final fare to Rs 1,334. Although Uber refunded Rs 975 worth of Uber Credits to Mr Prashar's account, the Commission deemed it necessary to award him compensation for mental distress and harassment, along with covering litigation expenses.

Consumer Disputes Redressal Commission slams Uber

The Commission criticized Uber India for shifting blame onto the driver and emphasized the company's responsibility for ensuring fair practices. It highlighted the lack of transparency regarding Uber's contracts with its drivers and underscored the need for the company to uphold its commitments to customers.

In its ruling, the Commission asserted that charging excessive fares beyond the contracted amount constitutes unfair trade practice. To deter such behavior, it mandated Uber to deposit Rs 10,000 as compensation in the Consumer Welfare Fund, in addition to compensating Mr Prashar and covering litigation expenses.