The regional competition watchdog is investigating consumer concerns raised against ride-hailing company Uber in Kenya, Egypt and Uganda.
The COMESA Competition Commission (CCC) said it had launched investigations into the Terms and Conditions of Uber in the three Member States which it notes could be perceived as misleading and unconscionable.
Among concerns flagged out is limitation of national laws that conditions the application of the Netherland’s law in case of a dispute. This means disputing parties are compelled to travel to the Netherlands despite the offence occurring on local soil.
“The Commission sees this as a terrible condition and Uber will have to remove it and have the national law apply,” CCC chief executive Willard Mwemba told journalists in Zambia.
Another area of concern in the Uber terms and condition is that the company reserves its right to change the displayed price to the consumer at any time.
What this means is that the consumer would be compelled to pay for a higher price at the end of the transaction than the booking price which the consumer used to enter the transaction.
The CCC notes this as an unconscionable conduct given that charges can be revised or the contract terminated as the company deems fit at the expense of the customer.
The conduct of Uber in reference to absolving itself from any liability with regard quality of services and risks associated with contracted drivers and indemnity clauses have also been termed unconscionable.
Misleading or unconscionable conduct is prohibited by the COMESA Competition Regulations and the Regulations empower the CCC to investigate such conduct.
The CCC has engaged Uber on the areas of concern which in light of the COMESA Regulations and qualified them as either misleading or unconscionable conducts.
“Uber has been cooperative in considering the proposals from the CCC and the CCC believes that through this engagement, consumer protection in the COMESA Region will be enhanced,” said Dr Mwemba.
ligadwah@businessdayafrica.org