Uber has been forced to revise its customer terms of service after a regulatory investigation found that the ride-hailing giant was potentially misleading customers and limiting their legal rights.
The changes come following a probe initiated by the UK’s Competition and Markets Authority (CMA), which raised concerns that several clauses in Uber’s terms could be unfair and potentially unlawful under consumer protection laws.
The investigation, which began earlier this year, focused on clauses that appeared to absolve Uber of liability in cases of negligence, misled customers about their rights to refunds, and restricted their ability to bring legal action.
According to the CMA, these terms could mislead customers into believing they had fewer rights than they actually do under UK law. The regulator emphasized the importance of companies operating transparently and ensuring their terms are clear, fair, and legally compliant.
Uber has now agreed to make a series of significant changes. The revised terms clarify that Uber accepts legal responsibility if a passenger suffers harm due to its failure to provide services with reasonable care and skill.
Furthermore, the company will no longer suggest that customers must forgo their right to pursue legal action through courts in favor of arbitration. It will also update its refund policy to ensure users are not unfairly denied compensation when entitled to it.
Sarah Cardell, Chief Executive of the CMA, welcomed the changes, stating that consumers must be able to trust that terms and conditions will protect, not exploit, them.
She added that Uber’s willingness to cooperate and update its terms was a positive step but warned other digital platforms that they must also ensure their practices comply with consumer law.
Uber, which operates in over 70 countries, said in a statement that the changes reflect its commitment to transparency and fairness. The move marks a broader shift in regulatory scrutiny of global tech firms and how they handle customer rights in the digital economy.
Written By Ian Maleve