Uber Fined for Overcharging in Chandigarh, Ordered to Compensate Customer

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Uber India faced a fine of ₹20,000 from the District Consumer Disputes Redressal Commission of Chandigarh for overcharging a customer on a short ride. Ashwani Prashar, a resident of Chandigarh, was billed ₹1,334 for a ride of 8.83 kilometers, amounting to a staggering rate of ₹150 per kilometer. Despite Prashar’s attempts to resolve the issue with Uber, his complaints went unanswered, leading him to file a formal complaint.

Uber India claimed that the upfront fare displayed to Prashar was ₹359, but due to multiple route changes, the final fare surged to ₹1,334. However, the Commission deemed this explanation unfair, criticizing Uber’s practice of charging excess fare compared to the initially agreed fare at the time of booking.

As a result of the ruling, Uber India was ordered to pay ₹10,000 in compensation to Prashar and deposit another ₹10,000 in the legal aid account. The Commission’s decision highlights the need for online service providers to maintain fair practices and transparent billing for their customers.

In response to the ruling, Uber India refunded ₹975 worth of Uber Credits to Prashar’s account as a goodwill gesture. This incident serves as a reminder to companies to ensure fair billing practices and uphold consumer rights, preventing frustration and dissatisfaction among customers.