Uber Eats to pay $10 Mn for listing US restaurants without permit
By MYBRANDBOOK
Ride-hailing major Uber will pay millions of dollars as settlement with the City of Chicago in the US for listing local restaurants in food delivery apps Uber Eats and Postmates without consent along with charging excess commission fees.
The city also alleges that Uber participated in deceptive advertising practices. More than 2,500 Chicago restaurants are estimated to be eligible to benefit from the Uber settlement. Of the settlement amount, over $5 million will go toward paying damages back to Chicago restaurants that were affected.
$1.5 million will go to Chicago for the costs incurred during the city’s two-year investigation into the matter. Uber will pay an additional $2.25 million to restaurants that were allegedly charged commissions higher than the fee cap and $500,000 to restaurants that Uber listed on its platforms without consent. Uber will also pay $2.5 million in commission waivers to affected restaurants.
Mayor Lori Lightfoot said, “Today’s settlement reflects the City’s commitment to creating a fair and honest marketplace that protects both consumers and businesses from unlawful conduct. Chicago’s restaurant owners and workers work diligently to build their reputations and serve our residents and visitors. That’s why our hospitality industry is so critical to our economy, and it only works when there is transparency and fair pricing. There is no room for deceptive and unfair practices.”
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