The US Federal Trade Commission (FTC) has launched a lawsuit targeting Uber, accusing the ride-hailing giant of engaging in deceptive billing methods and creating unnecessary obstacles for customers trying to cancel their subscriptions. The lawsuit claims that Uber charged users for its Uber One subscription service without obtaining proper consent, making the cancellation process overly complicated.
According to FTC Chairman Andrew Ferguson, a Trump appointee, “The Trump-Vance FTC is fighting back on behalf of the American people,” emphasizing the agency's commitment to consumer protection. In response, an Uber spokesperson expressed disappointment over the lawsuit, staunchly denying the allegations.
Introduced in 2021, the Uber One subscription service offers users benefits such as fee-free delivery and discounts on rides and orders, available for $9.99 monthly or $96 annually. The FTC's complaint highlights that canceling a subscription can require consumers to navigate through as many as 23 screens and complete up to 32 actions, significantly complicating what should be a simple process.
Uber's representative, Ryan Thornton, countered these claims, stating that recent improvements now allow users to cancel subscriptions within the app in 20 seconds or less. He noted that previously customers had to reach out to support 48 hours before their next billing cycle to cancel, a practice that has since been revoked.
The FTC also raised concerns about consumers being inadvertently enrolled in Uber One without their consent, citing an instance where an individual was charged despite lacking an Uber account. Uber firmly denied these claims, asserting that it does not sign up or charge users without explicit consent.
This legal action represents the first lawsuit initiated by the FTC against a prominent US tech company during President Trump's second term, following a similar case against Meta, which is currently underway related to antitrust disputes over its acquisitions of Instagram and WhatsApp.
