Grab Philippines has been penalized with a Php9 million fine by the Philippine Competition Commission (PCC) for failing to comply with its orders to refund customers.
In a statement released on Monday, the PCC said this fine is a new addition to the existing Php63.7 million worth of penalties that Grab has accrued since 2018.
The new fine was imposed by the PCC in a resolution it issued on February 2, 2023, stating that Grab violated three refund orders by missing the 60-day deadline for each order. The regulatory body also found misleading and incorrect information from the compliance reports that Grab submitted, including the company’s claim that it had already fulfilled the refund.
Grab received in November 2019 its first refund order, in which the company must return a total of Php5.05 million to overcharged customers. Another order followed a month later, and a third was issued in October 2020. The company is required to return a total of Php25.45 million to customers.
Grab started refunding customers in January 2020. After reviewing the compliance reports, the PCC found that only 24.16 percent of the total amount was returned as of June 2021. Grab’s compliance increased to 73.80 percent by April 2022, after the PCC issued a show-cause order in January of the same year.
The PCC also told Grab to utilize various ways to reach out to customers and provide them alternative ways to receive the refund besides the ride-hailing company’s in-app wallet feature.
UPDATE: Grab Philippines sent a statement to NoypiGeeks regarding the issue. Read the full statement below.
“We are glad that the PCC has finally come to a decision on the disbursement mechanism for the remaining administrative fees – so we can put this matter to rest. At the same time, we are surprised at PCC’s decision to fine us – given that we’ve been proactively engaging with them for over a year with proposals for alternative mechanisms to disburse the remaining administrative fees.
Grab Philippines has always been 100% committed to fully depleting the unclaimed admin fees, and have made every effort we can to do so. We proposed alternative disbursement mechanisms and are surprised that the PCC made a decision in February 2023 without informing us – given that we’ve been regularly following up with them. Nevertheless, we will implement the order of the PCC for Alternative Refund Mechanism as required by the PCC Order.
As we have been forthcoming in explaining our legal position, and challenges to the PCC; and have been proactive in proposing alternative disbursement mechanisms, we will be evaluating our legal options regarding the PhP 9M fine.”