FTC charges Uber with deceptive practices in subscription service
- The FTC claims Uber enrolled customers in Uber One without consent and created hurdles to cancellation.
- Customers reported being charged before the end of free trials and difficulties in accessing customer support.
- The lawsuit aims to prevent future violations and enforce consumer protection laws.
On April 21, 2025, the United States Federal Trade Commission (FTC) initiated legal action against Uber, focusing on its Uber One subscription service. The lawsuit, filed in the US District Court for the Northern District of California, claims that Uber enrolled consumers in the service without proper consent and complicated the cancellation process. Specific allegations include charging customers before the end of free trial periods and not properly accounting for the costs of the subscription when making savings claims. The FTC noted that numerous customers felt misled and found cancellation procedures tedious. The FTC highlighted concerns regarding customer experiences asserting that some users encountered difficulties in canceling their Uber One memberships. Reports indicated that the process could involve excessive screens and actions, with up to 23 clicks required to complete cancellation. Complaints also suggested that some users continued to be charged even after attempting to cancel, leaving them frustrated with the apparent lack of support from Uber’s customer service. This legal action falls within a broader context of antitrust scrutiny the federal government is applying to major technology companies. Uber responded to the lawsuit by expressing disappointment and claiming confidence that the legal system would validate their practices. The company maintained that their sign-up and cancellation procedures are clear and comply with legal standards. Uber asserted they do not charge customers without consent and that recent updates have simplified the cancellation process, further stating it could be completed in less than 20 seconds by users. The filed lawsuit represents not only a consumer protection concern but also a significant development within the ongoing discourse surrounding regulations for Big Tech firms in the United States. With the FTC's efforts, the case against Uber could set a precedent for future actions concerning other technology companies accused of similar deceptive practices, shedding light on the necessity for accountability and transparency in subscription services offered by major corporations.