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ARTICLE · 12 NOVEMBER 2015

Uber's arbitration clause is taking people for a ride

This is another example of a foreign business trying to force onerous and expensive arbitration obligations on consumers.

AustraliaConsumer Protection

Uber is the German word for 'better than a taxi'. Thanks to Uber, the taxi industry may just fade into obscurity like Jarryd Hayne's NFL career (too soon?). Well, Uber updated their T&Cs last week and we've noticed a sneaky arbitration clause that could see you end up in Amsterdam.

Uber chose the day after the Melbourne Cup as a good time to force something new on its users. No, not a free delivery of Messina gelato, but an email saying they had updated their T&Cs.

Uber's T&Cs form the basis of a contract between consumers and Uber. The T&Cs are governed by Dutch law and make it mandatory for the parties to take any dispute first to mediation and, if that fails, to a private arbitration, both of which are required to take place 16,000kms away in Amsterdam. This is hardly practical or fair for Australians.

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