SYDNEY—Uber Technologies Inc. could pay roughly $19 million in penalties in Australia after the country’s competition regulator found it misled riders by warning of cancellation charges even within a designated fee-free window.

During a four-year period through late 2021, the ride-hailing app cautioned more than two million Australian customers seeking to cancel a trip within Uber’s free cancellation period that they might be charged a fee, likely leading riders to rethink their cancellation, the Australian Competition and Consumer Commission said on Tuesday. Most services including UberX have a five-minute window after a driver has accepted a trip for riders to cancel without facing any charge.

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This post first appeared on wsj.com

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