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Title : Uber Eats to amend 'unfair contracts' with restaurant owners, following ACCC probe
link : Uber Eats to amend 'unfair contracts' with restaurant owners, following ACCC probe

Uber Eats to amend 'unfair contracts' with restaurant owners, following ACCC probe

Related Story: Uber Eats to face ACCC probe over restaurant contracts

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Uber Eats will amend its contracts to remove unfair terms that penalise restaurant owners, following an ABC investigation which triggered a probe by the consumer watchdog last year.

In its contracts, Uber included terms which shifted most of the responsibility to restaurateurs — even in situations where the food left their restaurant and they had no control over the delivery process.

"Uber Eats has committed to changing its contract terms that we believe are unfair, because they make restaurants responsible and financially liable for elements outside of their control," said Rod Sims, chairman of the Australian Competition and Consumer Commission.

"We consider these terms to be unfair because they appear to cause a significant imbalance between restaurants and Uber Eats; the terms were not reasonably necessary to protect Uber Eats and could cause detriment to restaurants."

One of the terms was that Uber does not provide "any delivery or logistics services" — even though Uber boasts that "we deliver" in several sections of its website.

The Uber Eats contract also states that the drivers are the "agents" of the restaurant — even though Uber pays them and controls their workflow.

Furthermore, if the food becomes "substandard" (for example hot food falling below 60 degrees Celsius), Uber has the power to demand that the restaurant cover the customer refund.

Uber Eats has agreed to amend the terms to clarify that restaurants will only be responsible for matters within their control.

These include situations involving wrong food items, and incorrect or missing orders.

Restaurants will also be given the right to dispute with Uber as they work out who is responsible for any refunds to customers.

"We will continue to monitor Uber Eats' conduct to ensure restaurants are not unfairly held responsible for matters outside of their control and Uber Eats does not hold anyone else responsible for parts of the service it controls," Mr Sims said.

Uber Eats will begin rolling out changes to its contracts shortly and says all will be completed by the end of the year.

More to come.

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