Uber India ordered to refund cancellation charges of Rs 27.44, Rs 37.45

HYDERABAD: Uber India Systems Private Limited was directed by the Telangana District Consumer Disputes Redressal Commission to refund the wrongly collected cancellation charges. Uber was ordered to pay an amount of Rs 27.44 and Rs 37.45 to the complainant, which was wrongly collected as cancellation charges.

Rajkumar Gummi registered a complaint against Uber as they charged for cancellation even though it was the Uber driver who had cancelled the trip. The complainant claimed that the driver had unilaterally cancelled the trip but the cancellation charges were added to the next trip booked by him. He also contended that the trip was cancelled at the last moment which caused enormous inconvenience. Alleging that the charging of the cancellation fee was not only an unfair trade practice but also a violation of the Consumer Protection Rules, 2020, the complainant approached the court for justice.

Uber, defending itself, claimed that the complaint was filed with malafide intentions to cause a dent to its well-earned goodwill and reputation. Uber also said that the user was always given prior information about cancellation charges that would be added up to their next trip. It sought dismissal of the case on the grounds that everything was in accordance with the terms and conditions without any violations.

The court, after hearing both the parties, defined the charging of cancellation fees as an 'unfair trade practice.' The court said that the collection of cancellation charges from the consumer when the trip was cancelled by the driver was not only unfair but also reflected non -transparency in the company's pricing policy. Uber was directed to refund the cancellation charges within 45 days.