NAIROBI, Kenya, Sept 19 – Ride-hailing company Uber has localized its terms and conditions after a probe by the COMESA Competition Commission revealed the firm had relied on foreign provisions to operate in countries such as Kenya and Uganda.
In September 2023, the Common Market for Eastern and Southern Africa (COMESA) watchdog opened an investigation into Uber BV for possible false and misleading representation, as well as unconscionable conduct towards consumers.
The inquiry followed multiple consumer complaints in Uganda, Kenya, and Egypt, which included passengers being charged higher prices than those displayed, drivers cancelling bookings after long waits, and in some cases drivers failing to turn up yet customers still getting charged.
The Commission noted that Section 1 of Uber’s terms gave the company the power to terminate a consumer’s service at any time, for any reason and without notice, a clause it flagged as a major concern.
In addition, Section 4 reserved Uber’s right to establish, remove, or revise charges for services or goods obtained through its platform at any time and at its sole discretion.
“The Commission’s concern was that the consumer may be misled to rely on the displayed price to make a decision, when in fact it was likely to change. The Commission was also concerned that consumers may be forced to pay more than the agreed price even for reasons that cannot be attributed to the consumer,” COMESA Competition Commission CEO Willard Mwemba said.
Sections 2, 4, and 5 of Uber’s terms also absolved the firm from any liability regarding the quality of services and risks linked to third-party providers contracted to deliver services through its platform.
Further, Section 7 of the Terms applicable in Kenya and Uganda stated that disputes would be governed exclusively by Dutch law, a clause that, according to the Commission, potentially limited the application of domestic laws and violated consumers’ right to affordable and effective redress.
Following the probe, Uber agreed to amend its Terms and Conditions to align with COMESA’s consumer protection regulations.
“The Commission recommended to the Committee Responsible for Initial Determinations (CID) that the investigation against Uber be closed, given that Uber had addressed the concerns and complied with directives,” Mwemba added.
The CID said it was satisfied with Uber’s response and officially closed the investigation. Uber has since been required to publish the revised Terms and Conditions on its websites, apps, and related platforms, and notify consumers of the changes.
