Judge says Uber can’t use 'deficient' sign-up process to strip users of their right to sue

5 September 2017 - Can Uber use some contractual language that users never actively acknowledge to force wronged customers out of the courtroom and break up class-action lawsuits? Currently, that depends on which federal judge you ask, with yet another court ruling that Uber may not be doing enough to tell users that they are giving up their right to a day in court. This latest ruling involves a law suit filed in a California federal court over fees that Uber charges for canceled rides. The judge concluded that your typical new Uber user would likely go straight to filling in the credit card information without looking elsewhere on the page for a terms and condition alert. So when that user presses the “REGISTER” button, they have probably not even seen the notice and linked user agreement. According to the judge, having this important notice obstructed by the phone’s keyboard is a “fatal defect to the alert’s functioning. That defect turns what would be a sufficient notice process into a deficient one.” Uber has repeatedly attempted to use this arbitration clause to get out of lawsuits — to varying degrees of success.

Morran, C. (2017), 'Judge says Uber can’t use “deficient” sign-up process to strip users of their right to sue,' Consumer Reports, 5 September.


  • Article
  • United States
  • Yes
  • transport
  • On-location platform-determined routine work
  • Uber
  • arbitration, information asymmetry
  • English
  • Consumerist (Publisher)
  • 2017
  • Open access
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