The U.S. Federal Trade Commission (FTC) has filed a lawsuit against Uber Technologies. The agency claims Uber signed up people for its Uber One subscription without permission and made it hard to cancel. Uber One costs $9.99 per month and promises users discounts on rides and food deliveries.
According to the FTC, Uber advertised that customers could save up to $25 each month with Uber One. However, many subscribers didn’t see those savings. The commission also said Uber promised an easy “cancel anytime” option, but made it hard to cancel the service. In some cases, users had to go through 23 screens and make 32 clicks just to cancel.
FTC Chairman Andrew Ferguson said the agency is working to protect Americans from unfair practices.
“Americans are tired of getting signed up for unwanted subscriptions that seem impossible to cancel. The Trump-Vance FTC is fighting back on behalf of the American people,” he said.
He added that Uber not only tricked users into subscribing but also created barriers to cancel the service.
Uber has denied all accusations. A company spokesperson, Noah Edwardsen, said the sign-up and cancellation process for Uber One is clear and follows the law.
“We are disappointed that the FTC chose to move forward with this action. But we are confident that the courts will agree with what we already know: Uber One’s process is simple and honest,” Edwardsen said.
In the complaint, the FTC said Uber used hard-to-read text to hide important subscription details. Some customers were charged before their free trial ended, even though Uber promised no charges during the trial period. Others said they were billed even though they didn’t have an account with the company.
The FTC stated that Uber’s actions violated the FTC Act and the Restore Online Shoppers’ Confidence Act (ROSCA). These laws require online services to show their terms and conditions clearly.
This is not the first time Uber has clashed with the FTC. In 2017, the agency accused Uber of exaggerating how much drivers could earn and misleading them about vehicle financing options. Uber claimed drivers in New York could earn over $90,000 a year, but the real number was closer to $61,000. Less than 10% of drivers even reached that income.
To settle the case, Uber paid $20 million in 2018 and agreed to stop making false claims about earnings.
In 2022, Uber faced another case involving a data breach. The FTC said the company failed to report a 2016 cyberattack that exposed personal data of 57 million users. Uber settled that case as well.
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