FTC Sues Uber Over Alleged Deceptive Subscription Practices
The Federal Trade Commission (FTC) has filed a lawsuit against Uber, accusing the ride-hailing giant of deceptive billing and obstructive cancellation practices tied to its Uber One subscription service.
Filed in the U.S. District Court for the Northern District of California on Monday, the lawsuit claims that Uber charged customers for its monthly membership program without proper consent and made the cancellation process unnecessarily difficult – despite marketing it as “cancel anytime.”
Uber One offers members benefits like free delivery and discounts on rides for a monthly fee of up to $9.99. However, the FTC alleges that the company failed to live up to its promises, with some customers being automatically charged before the end of their free trials, enrolled without clear consent, and subjected to a cancellation process that required up to 23 clicks and 32 separate actions.
“Americans are tired of getting signed up for unwanted subscriptions that seem impossible to cancel,” said FTC Chairman Andrew Ferguson in a statement.
The agency also criticized Uber for overstating the program’s value. While Uber advertised potential savings of $25 per month, the FTC noted that the company failed to factor in the actual cost of the subscription when calculating those benefits.
Uber rejected the claims, with its legal representatives – including former FTC chair Tim Muris and former commissioner Christine Wilson – labeling the lawsuit the result of a “rushed investigative process” based on “misunderstandings.”
“We are disappointed that the FTC chose to move forward with this action,” Uber said in a statement. “But we are confident the courts will agree that Uber One’s sign-up and cancellation processes are clear, simple, and lawful. Uber does not charge customers without their consent, and most cancellations now take 20 seconds or less within the app.”
The lawsuit accuses Uber of violating both the FTC Act and the Restore Online Shoppers’ Confidence Act (ROSCA), laws designed to protect consumers from unfair and deceptive online business practices.
This case marks one of the FTC’s first major enforcement actions against a tech company under Ferguson’s leadership. The agency continues to ramp up scrutiny of major tech firms, including a separate antitrust case involving Meta’s acquisitions of Instagram and WhatsApp.
