LTFRB relents on Grab penalties: No more refund but P10-M fine stands

The Land Transportation Franchising and Regulatory Board (LTFRB) on Tuesday reduced the penalties it earlier slapped on ride-hailing giant Grab for its unilateral imposition of a P2-per-minute travel fee.

Grab would no longer be required to reimburse passengers who paid the travel charge between June 5, 2017 and April 19 this year, it announced.

However, the transport network company (TNC) would still have to pay the P10-million fine meted out by the LTFRB in its July 9 decision.

Grab had defended its P2-per-minute travel charge in its motion for reconsideration, saying it was allowed to unilaterally set its own rates under the now-rescinded Department Order (DO) No. 2015-11.

Grab’s argument

It also argued that the LTFRB did not have the authority to declare the DO null and void, saying this could be done only by a court.

It also questioned why the transport board directed it to reimburse riders when the LTFRB had no power to order a refund of overcharged fares.

Invoking Commonwealth Act No. 146 or the Public Services Act, the LTFRB in its order assailed Grab’s argument that its July 9 order was contrary to law and jurisprudence, stressing that it was mandated to regulate utilities such as TNCs to protect public interest.