The Federal Trade Commission (FTC) has filed a lawsuit against Uber, alleging the ride-hailing giant engaged in deceptive practices related to its Uber One subscription service. The complaint accuses Uber of charging customers without consent and making cancellations unnecessarily difficult.
According to the FTC's complaint, Uber misled customers about potential savings from the $9.99 monthly subscription service while failing to account for the subscription cost itself in savings calculations. The agency claims Uber automatically charged consumers who signed up for free trials before their billing date.
The lawsuit highlights major concerns about Uber's cancellation process, with users reportedly having to navigate up to 23 screens and take as many as 32 separate actions to cancel their subscription. Some customers were directed to contact customer support but given no way to reach representatives.
"Americans are tired of getting signed up for unwanted subscriptions that seem impossible to cancel," said FTC Chairman Andrew Ferguson in a statement.
Uber strongly denies the allegations. "Uber One's sign-up and cancellation processes are clear, simple, and follow the letter and spirit of the law," said an Uber spokesperson. The company maintains that cancellations can now be completed in-app within approximately 20 seconds.
The timing is notable as the FTC recently finalized its "click to cancel" rule, requiring companies to make subscription cancellations as straightforward as sign-ups. This rule takes effect May 14.
Uber One has grown to 30 million members across 34 countries in 2024, with membership fees projected to exceed $1 billion this year. The FTC is seeking court action to stop the alleged deceptive practices and obtain monetary relief for affected customers.
The case represents the latest regulatory challenge for major tech companies under the current FTC leadership, which has pledged continued scrutiny of the sector.
You can read more about the FTC's ongoing efforts in their investigation into Uber's subscription service practices.