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Australia: Regulator makes Uber Eats amends its contracts

 |  July 17, 2019

Uber Eats has committed to changing its contracts with restaurants following an investigation by the Australian Competition and Consumer Commission (ACCC).

From at least 2016, Uber Eats’ contract terms made restaurants responsible for the delivery of meal orders, in circumstances where they had no control over that same delivery process once the food left their restaurant.

Uber Eats’ contract terms give it the right to refund consumers and deduct that amount from the restaurant even when the problem with the meal may not have been the fault of the restaurant.

“Following our investigation, Uber Eats has committed to changing its contract terms that we believe are unfair, because they make restaurants responsible and financially liable for elements outside of their control,” ACCC Chair Rod Sims said.

“We consider these terms to be unfair because they appear to cause a significant imbalance between restaurants and Uber Eats; the terms were not reasonably necessary to protect Uber Eats and could cause detriment to restaurants.”

Uber Eats has agreed to amend these terms; to clarify that restaurants will only be responsible for matters within their control such as incorrect food items or incorrect and missing orders.

Full Content: ACCC, Wall Street Journal

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