FTC Lawsuit Against Uber Over Alleged Subscription Misconduct

The U.S. Federal Trade Commission has initiated a lawsuit against Uber, accusing the company of deceptive subscription practices, including unauthorized charges and complex cancellation processes.

The U.S. Federal Trade Commission (FTC) has taken legal action against Uber, alleging that the rideshare and delivery giant has engaged in misleading billing practices regarding its subscription service, Uber One. The FTC claims Uber has charged customers without their consent and created hurdles for users attempting to cancel their subscriptions.

FTC Chairman Andrew Ferguson, a Trump appointee, emphasized the commission’s commitment to protecting consumers in his statement about the lawsuit. An Uber spokesperson expressed disappointment over the FTC’s decision to pursue the case, firmly denying all allegations.

Launched in 2021, Uber One offers various benefits to subscribers, such as zero-fee delivery and discounts on rides and orders, available at a monthly fee of $9.99 or an annual charge of $96.

In its complaint lodged on Monday, the FTC highlighted that subscribers face considerable difficulty when attempting to cancel their services. Citing instances where customers reportedly had to navigate through as many as 23 screens and perform up to 32 actions just to end their subscriptions, the FTC underscored the challenge involved.

In response, Uber countered that cancellations can now be executed effortlessly within the app, taking most users around 20 seconds. Previously, consumers were required to contact support within a strict timeframe of 48 hours to cancel, a policy that Uber claims has since been revised.

Additionally, the FTC noted that numerous consumers alleged they were mistakenly enrolled in Uber One without consent, including one individual who was charged despite lacking an Uber account. Uber rebutted this claim, insisting it does not enroll or charge consumers without their explicit permission.

This lawsuit marks the FTC’s first action against a major U.S. technology firm since President Trump began his second term in January. The commission is currently also involved in a significant antitrust trial against Meta, which began two weeks ago. In this case, the FTC argues Meta, the parent company of Facebook, secured a monopoly in social media through its acquisitions of Instagram in 2012 and WhatsApp in 2014, a claim that Meta has vehemently refuted.

As the legal confrontations unfold, the spotlight remains on the complexities of consumer rights and regulatory practices in the tech industry.