US Federal Trade Commission sues Uber over subscription practices

The US Federal Trade Commission has filed a lawsuit against Uber, alleging the ride hailing and delivery company engaged in deceptive billing and cancellation practices.

The consumer protection watchdog accused Uber of charging customers for its Uber One subscription service without getting their consent and making it hard for users to cancel.

“The Trump-Vance FTC is fighting back on behalf of the American people,” FTC Chairman Andrew Ferguson, a Trump appointee, said in a statement.

An Uber spokesperson denied the allegations, and it was “disappointed” that the FTC chose to move forward with the lawsuit.

Launched in 2021, the Uber One subscription service promises users perks including no-fee delivery and discounts on some rides and orders. The service can be purchased for $9.99 a month or $96 a year.

In its complaint filed on Monday, the FTC said that Uber has made suspending subscriptions “extremely difficult” for consumers, who can be subjected to navigating as many as 23 screens and taking up to 32 actions if they try to cancel.

In a point-by-point response, Uber disputed that allegation.

“[C]ancellations can now be done anytime in-app and take most people 20 seconds or less,” Uber spokesman Ryan Thornton said in a statement.

Uber said that previously, to cancel, the consumer had to contact support within 48 hours of their next billing period but said that is no longer the case and customers can cancel at any time.

The FTC also alleges that many consumers said they were enrolled in Uber One without giving their consent. The complaint cites one consumer who claimed they were charged despite not having an Uber account.

Uber said in its response that it “does not sign up or charge consumers without their consent.”

The legal action against Uber marks the FTC’s first lawsuit filed against a major US tech company since President Donald Trump took office for his second term in January.

The agency’s case against Meta – initiated during the first Trump administration – is now in its second week on trial.

The FTC alleges the company, which was previously known as Facebook, secured a social media monopoly with its acquisitions of photosharing app Instagram in 2012 and messaging service WhatsApp in 2014.

Meta has said the lawsuit from the FTC, which reviewed and approved those acquisitions, is “misguided.”