Uber, Easy Taxi, and Cabify fined MXN$6.4 million in Mexico

PROFECO imposed sanctions on the ride hailing companies due to unfair terms and misleading advertising
Uber, Easy Taxi, and Cabify fined MXN$6.4 million in Mexico
Although these companies offer “safe transport services,” their terms and conditions exempt them of all legal liability - Photo: Richard Drew/AP
11/07/2018
18:28
Ivette Saldaña
Mexico City
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The Office of the Federal Prosecutor for the Consumer (PROFECO) imposed sanctions to Uber, Easy Taxi, and Cabify for over 6 million pesos due to the use of unfair terms and misleading advertising for their users.

“As a result of the Law Infraction Procedures against these service providers, disciplinary sanctions have been imposed: Uber was fined with 3,974,000 pesos; Easy Taxi was fined 1,810,000 pesos, and Cabify with 700,000 pesos. The companies have already been notified, though they may still be subject to judicial challenge,” stated PROFECO in a press release.

The sanctions came as a result of certain irregularities in their services, such as the application of adherence contracts, which include “disproportionate, unfair, and abusive conditions for consumers, as well as the dissemination of misleading advertising.”

Although these companies offer “safe transport services,” their terms and conditions exempt them of all legal liability.

Cabify “establishes in a unilateral fashion that the rates charged to customers cannot be reimbursed.” Their terms and conditions also state that, during periods of increased demand, “a higher and variable cost may be established,” though their criteria for these higher costs remains unclear.

 

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Users of these ride hailing services are also forced to release the company from any legal responsibility in case of any civil or criminal claims. They will also “not be responsible for any damage claims that could be caused by the misuse of Easy Taxi’s information or equipment in case a third party should compromise the passenger or driver’s security or use their information illegally.”

On the other hand, PROFECO considered that Uber was “in direct violation of the law by refusing to give an address, phone number, and other means of contact in the country for further clarifications or claims regarding the application of additional service charges without the user’s express authorization (repair fees and such).”

PROFECO has also pointed out that Uber had not considered Mexico’s legislation in establishing their terms and conditions, though they have agreed to change certain clauses.

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