FTC Files Lawsuit Against Uber Over Alleged Subscription Deception

The Federal Trade Commission alleges Uber's practices related to its Uber One subscription service violate consumer protection laws, sparking a significant legal battle.

In a recent move, the US Federal Trade Commission (FTC) has initiated legal proceedings against ride-hailing giant Uber, accusing the company of engaging in misleading billing and subscription cancellation practices. The complaint, filed by the federal consumer protection agency, states that Uber charged customers for its Uber One subscription service without properly obtaining their consent and made it exceedingly difficult for users to cancel their subscriptions.

FTC Chairman Andrew Ferguson, a Trump appointee, emphasized the agency's commitment to protecting consumers in his statement following the lawsuit's announcement. "The Trump-Vance FTC is fighting back on behalf of the American people," he asserted, highlighting the importance of accountability in the tech industry.

Uber's Uber One subscription service, launched in 2021, offers members benefits such as waived delivery fees and discounts on select rides. Priced at $9.99 monthly or $96 annually, it has attracted a substantial user base. However, the FTC's complaint alleges that consumers face significant challenges when attempting to cancel the service, with reports indicating that many users must navigate as many as 23 screens and perform up to 32 actions to discontinue their subscriptions.

In response to these claims, an Uber spokesperson argued that the cancellation process has been streamlined, asserting that cancellations can now be completed in-app within approximately 20 seconds. The spokesperson added, "Cancellations can now be done anytime in-app and take most people 20 seconds or less."

The FTC's complaint further alleges that a number of consumers found themselves enrolled in the Uber One program without their explicit consent, citing instances where individuals were charged despite not having active Uber accounts. Uber refuted these claims, stating, "We do not sign up or charge consumers without their consent."

This lawsuit marks a significant move by the FTC under the current administration, being its first legal action against a major tech company since President Donald Trump's recent inauguration. The agency is simultaneously pursuing an ongoing antitrust case against Meta, formerly known as Facebook, which accuses the company of monopolizing the social media landscape through its acquisitions of Instagram and WhatsApp in previous years. As the legal landscape continues to evolve, Uber finds itself at the center of scrutiny regarding its subscription practices.