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ACCC crackdown on unfair standard terms continues

Over the last couple of weeks, Uber Eats has been forced to agree to amend its standard form contract with restaurants to avoid legal action being commenced by the ACCC.

This follows on from an investigation by the ACCC on the Uber Eat contracts which for a number of years now has: –

  1. made restaurants responsible for the delivery of food orders despite the restaurant having no control over the delivery; and
  2. allowed Uber Eats to require restaurants to refund the cost of the food to customers if the food was ‘substandard’ regardless of whether this was caused by the restaurant or not.

The ACCC’s view is that the standard terms were unfair because they appeared to cause a significant imbalance between restaurants and Uber Eats, the terms were arguably not reasonably necessary to protect Uber Eats and they could cause detriment to restaurants.

Uber Eats agreed to amend their terms to clarify the responsibility of Uber Eats and the restaurants for delivery and substandard food and provide the restaurants an ability to dispute responsibility for refunds.

This further demonstrates the ACCC’s willingness to investigate unfair contract terms in all industries.