The US Federal Trade Commission has initiated a lawsuit against Uber, alleging that the company engaged in deceptive practices regarding its Uber One subscription service by charging customers without consent and complicating cancellation procedures. Uber has refuted these claims, maintaining that it provides transparent subscription options.
FTC Files Lawsuit Against Uber Over Alleged Deceptive Subscription Practices
FTC Files Lawsuit Against Uber Over Alleged Deceptive Subscription Practices
The Federal Trade Commission takes legal action against the ride-hailing giant, accusing it of improper billing and failure to secure customer consent for subscriptions.
The US Federal Trade Commission (FTC) has escalated its scrutiny of Uber by filing a lawsuit against the prominent ride-hailing and delivery service. The legal action centers on allegations that Uber engaged in deceptive billing tactics related to its Uber One subscription service, which launched in 2021. The FTC claims that the company charged customers for the service without obtaining proper consent and made the cancellation process excessively difficult.
FTC Chairman Andrew Ferguson, appointed during Donald Trump's administration, emphasized the agency's commitment to consumer protection in his statement, asserting that the lawsuit serves as a defense for the American public against corporate malfeasance. In response, an Uber spokesperson expressed disappointment regarding the lawsuit, firmly denying the accusations leveled by the FTC.
Uber One offers users a range of benefits, including no-fee delivery and ride discounts, available for $9.99 monthly or $96 annually. However, the FTC's recent complaint highlights obstacles faced by users trying to cancel their subscriptions, noting that some had to navigate as many as 23 screens and undertake up to 32 actions to complete the cancellation process.
In retort to these allegations, Uber's spokesman Ryan Thornton explained that the cancellation process has been streamlined, stating that users can now cancel their subscriptions in the app in approximately 20 seconds. He clarified that previously, users were required to contact customer support within 48 hours of their next billing period for cancellations, but that restriction has since been lifted.
Additionally, the FTC’s complaint notes that several consumers reported being enrolled in Uber One without having provided their consent. The commission cited the case of an individual who reported being charged for the service while lacking an Uber account. Responding to this, Uber maintained that it never enrolls consumers or charges them without explicit consent.
The lawsuit represents the FTC's first significant action against a major tech firm since President Trump began his second term in office in January. Concurrently, the agency is pursuing a separate case against Meta, the platform formerly known as Facebook, accusing it of establishing a monopoly in social media through the acquisitions of Instagram and WhatsApp, which was approved by the FTC during its previous administration. Meta, too, has dismissed the FTC's claims as misplaced.
