Grab ordered to pay ₱10-M penalties for allegedly overcharging passengers

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Metro Manila (CNN Philippines, July 10) - Transportation officials have ordered Grab to pay a ₱10-million penalty for allegedly overcharging its passengers.

This was confirmed to CNN Philippines by the Department of Transportation (DOTr) Tuesday, adding the transportation network company (TNC), must also reimburse passengers "by way of rebate, for charging ₱2 per minute waiting time."

For its part, Grab said it was withholding comment pending consultations with its legal team, adding "they will reach out in due time."

In April, Grab admitted to charging the amount but said it was not illegal and the LTFRB had known about it. Grab also said they have been transparent about this fact.

The TNC said it was consistent with 2015 order by the LTFRB  allowing transport network vehicle services (TNVS) to set their own fares subject to government regulators' oversight.

Grab said they first began charging the fee in June 2017, but it was ordered suspended by the LTFRB on April 2018.

Grab's admission came after PBA Party-list Representative Jericho Nograles earlier told CNN Philippines' The Source about the fees, and said Grab had collected some P1.8 billion from it over the past five months.

CNN Philippines' Regine Cabato contributed to this report.