The Land Transportation Franchising and Regulatory Board (LTFRB) has ordered Grab Philippines to pay the hefty sum of PHP10 million as penalty for allegedly overcharging customers.
The government franchising agency is also requiring the ride-hailing service provider to reimburse passengers for the collected PHP2-per-minute waiting time charge.
As per the LTFRB advisory, Grab must reimburse the collected extra charge from June 5, 2017 to April 19, 2018 by way of rebate.
Grab refused to comment on the LTFRB decision pending consultations with its legal team.
In its defense, the ride-hailing app said that it was transparent with its PHP2-per-minute waiting time charge and that the LTFRB knew about it.
Grab claimed that the charge was consistent with the 2015 LTFRB order stating that transport network companies (TNCs) can set their own fares subject to government regulators’ oversight.
The LTFRB maintained that the PHP2-per-minute charge was illegal.
Grab suspended the charge beginning April 2018 following the LTFRB’s order, but filed a motion for reconsideration for the reinstatement of the charge.
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