As part of its $10 million settlement with the City of Chicago, Uber must pay millions and provide free services to Chicago restaurants that claimed they were taken advantage of by the ride-share company. The settlement resolves claims that Uber Eats and its Postmates platforms listed restaurants on their applications without the restaurant’s permission and even charged excessive commissions during the pandemic.
“Today’s settlement reflects the city’s commitment to creating a fair and honest marketplace that protects both consumers and businesses from unlawful conduct,” said Chicago Mayor Lori Lightfoot. “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.”
The settlement was the result of a two-year investigation of Uber Eats and Postmates, which included looking into allegations that Uber used deceptive advertising practices on consumers, something Uber denies.
The City of Chicago said that in September 2021, after discovering unlawful conduct, Uber repaid $3,331,892 to Chicago restaurants that had been charged commissions exceeding 15 percent, in violation of the city’s emergency fee cap ordinance, and removed restaurants that had not consented to be placed on its platforms.
Uber will now pay an additional $2,250,000 to Chicago restaurants that were charged commissions over the limits set by the city’s emergency fee cap. The ride-share company will also pay $500,000 to Chicago restaurants that Uber listed on its meal delivery platforms without consent and that do not currently contract with Uber.
In addition, Uber will provide $2,500,000 in commission waivers to Chicago restaurants that were listed on Uber’s platforms without consent and that do not currently contract with Uber. Finally, the company will pay $1,500,000 to the city to cover the costs and fees of its investigation.
“We delivered on our commitment to protect consumers and businesses,“ said Kenneth J. Meyer, commissioner of the Chicago Department of Business Affairs and Consumer Protection. ”The settlement is the result of the city acting swiftly and holding companies accountable for deceitful practices."
“We welcome any relief provided to the independent restaurants that struggled throughout the pandemic and continue to shoulder the rising costs of doing business,” said Sam Toia, president and CEO of the Illinois Restaurant Association. “No third-party delivery company should be listing restaurants without their consent, and all third-party companies should have been following the emergency cap imposed during the pandemic. Our restaurants will receive immediate benefit from this settlement.”
If you are a Chicago restaurant owner who believes they were placed on the Uber Eats platform without consent during the pandemic and would like financial relief, it’s encouraged that you visit Chicago.gov/UberSettlement.
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