The Daily Manila Shimbun

 

LTFRB fines Grab Philippines P10 million for overcharging

July 10, 2018

The Land Transportation Franchising and Regulatory Board ( LTFRB) said Tuesday it has fined Grab Philippines P10 million in penalties for overcharging and to reimburse its passengers by rebate, for charging two pesos per minute from June 5, 2017 to April 19, 2018. Signing the order were LFTRB chairman Martin Delgra and board member Ronaldo Corpus. Aileen Lizada, the other board member, did not sign the order and wrote "I dissent."

In a nine-page order inked Monday but released Tuesday, LTFRB said Grab Philippines " failed to impress the Board that its imposition of the per minute travel fare rate is within the purview of its discretion or authority.”
"On the contrary, it was clearly shown that such imposition of Respondent TNC [Grab Philippines] is invalid and without authority from the Board for which the Respondent is to suffer its consequences.  This is a case of overcharging, which has a corresponding penalty under existing regulation, mainly under Joint Administrative Order No. 2014-001.”
LTFRB said the reimbursement should be by way of rebate for future rides  and the rebate will only apply to Grab riders who were charged the time rate of P2 per minute, without authority from the board.
“The rebate will be availed of only for 20 days from the time of the decision becomes final or when the respondent shall commence the implementation of the rebate,” LTFRB said.
"The amount of the rebate shall be limited to the portion of the income of the respondent only, directly related to or arising form P2 per minute during the period of its unauthorized imposition,” it added.
Sought for comment, Grab Philippines said it "will reserve comment for now until we have fully studied and analyzed the matter with our legal team.”
Grab Philippines earlier said its fares were “legal and upfront “ and covered by a Department of Transportation Order in 2015 which allowed Transport Network Companies to set their own fares.
Leo Gonzales, head of Grab Philippines Public Affairs, had said even the LTFRB confirmed this in a February 2016 decision saying the DO is “valid, legal and subsisting until nullified by court.”
“The LTFRB decision also said the DO was issued to ‘promote mobility’ and respond to the needs of the modern commuter (who is)...able and willing to pay more for better transport services,” Gonzales said.
The DO was taken back when a new one was issued in August 2017 requiring all fares to be approved by the LTFRB moving forward.
PBA Representative Jericho Nograles earlier accused the ride-sharing app it charging an “illegal” minimum fare of P80 and charging its passengers of P2 per minute. DMS
     

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