An Uber user who was charged an outrageous rate for a brief ride received compensation from the Chandigarh Consumer Disputes Redressal Commission. On August 6, 2021, Ashwani Prashar, a Chandigarh resident, challenged the transportation cost of Rs 1,334 for a meagre 8.83-kilometre trip. He was granted Rs 10,000 in addition to an extra Rs 10,000 for legal fees.
Uber India defended the rate increase, citing several detours made along the way. The commission did stress that there is an unfair trade practice involved when there is a disparity between the upfront fare and the actual amount. As a result, they decided in Prashar's favour, recognising his right to damages for harassment and mental suffering.
The panel went on to say that service providers like Uber have an obligation to protect consumer trust and preserve openness. It required Uber to pay Prashar and pay for his legal fees in addition to putting Rs 10,000 into the Consumer Welfare Fund. The panel ruled that the "practice of charging an excess fare greater than the actual contracted fare at the time of advance booking is an unfair trade practice that needs to be deprecated, and as such, the complainant is entitled to compensation for mental agony and harassment and also to litigation expenses."
Crucially, the decision made it clear that customers expect to interact with the branded service provider rather than its unidentified partners. It stressed that, notwithstanding any concealed agreements with driver partners, Uber is still responsible for the actions of its drivers and that customers are unaware of the complexities of the contracts between Uber and its drivers.
As a goodwill gesture in response to the verdict, Uber India acknowledged the need to reassure users of the platform's dependability and returned a portion of the fare in Uber Credits.
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