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The Federal Trade Commission (FTC) has filed a lawsuit against Uber, accusing the company of deceptive billing and cancellation practices related to its Uber One subscription service. The lawsuit, filed Monday (April 21) in the US District Court for the Northern District of California, alleges that Uber charged customers for the service without their consent and made it difficult for them to cancel, despite advertising a "cancel anytime" policy.
According to the FTC, Uber One, which offers benefits like fee-free delivery and ride discounts, allegedly enrolled customers without their consent and charged them before the billing date. The agency claims that customers who signed up for a free trial were automatically charged before the trial ended. Additionally, the FTC says users had to navigate up to 23 screens and take 32 actions to cancel their subscription, with some being directed to contact customer support without being provided a way to do so.
FTC Chairman Andrew Ferguson stated, "Americans are tired of getting signed up for unwanted subscriptions that seem impossible to cancel."
The lawsuit also claims that Uber failed to account for the subscription cost when advertising monthly savings, misleading customers about the actual benefits of the service. Uber has denied the allegations, with spokesperson Noah Edwardsen stating that the company's processes are clear and simple, allowing cancellations to be completed in-app in about 20 seconds. Uber's legal team, including former FTC officials, described the investigation as rushed and based on misunderstandings.
The lawsuit marks one of the first major actions against a tech company by the FTC under President Donald Trump's administration. The agency has ongoing cases against other tech giants like Meta, Google, and Amazon.