FTC Files Lawsuit Against Uber Over Alleged Subscription Misconduct

The U.S. Federal Trade Commission has initiated a lawsuit against Uber, alleging improper billing and subscription cancellation practices related to its Uber One service, an accusation the company firmly denies.

The U.S. Federal Trade Commission (FTC) has taken significant action against Uber Technologies, Inc., filing a lawsuit that claims the ride-hailing and delivery giant engaged in deceptive subscription practices. The FTC asserts that Uber charged customers for its Uber One subscription service without adequately obtaining their consent, alongside creating unnecessary hurdles for users who attempted to cancel their subscriptions.

FTC Chairman Andrew Ferguson, a Trump appointee, stated, "The Trump-Vance FTC is fighting back on behalf of the American people," underscoring the agency's commitment to consumer protection. In response, Uber expressed disappointment over the FTC's decision to pursue legal action, categorically denying the allegations.

Launched in 2021, Uber One offers subscribers various benefits, including fee-free delivery and discounts for rides and food orders at a cost of $9.99 per month or $96 annually. The FTC's complaint elaborates that suspending a subscription became overly complex for users; it claims that individuals faced up to 23 screens and had to complete 32 different actions in order to cancel. However, Uber has reassured users that cancellation now only takes 20 seconds or less and can be completed within the app.

Furthermore, the FTC raised concerns that many individuals were automatically enrolled in Uber One without their explicit consent, citing examples where users were charged without ever opening an account. Contrarily, Uber insists it does not enroll or bill anyone without clear permission.

The lawsuit is notable as it represents the FTC's first legal challenge against a major U.S. tech firm since President Donald Trump commenced his second term in office. As the regulatory landscape evolves, attention remains focused on the agency's ongoing examination of large corporations, including a separate case against Meta (formerly Facebook) for alleged antitrust violations related to their acquisitions of Instagram and WhatsApp. Meanwhile, Uber's legal narrative unfolds amid broader discussions about transparency and consumer rights in the digital marketplace.