FTC Takes Legal Action Against Uber for Deceptive Subscription Practices

In a significant move, the US Federal Trade Commission (FTC) has initiated a lawsuit against Uber, alleging that the ride-hailing giant has engaged in deceptive billing practices concerning its Uber One subscription service. The FTC claims that Uber has charged consumers without obtaining their consent and made the cancellation process overly complex. FTC Chairman Andrew Ferguson emphasized the agency's commitment to protecting American consumers. Despite the allegations, an Uber spokesperson expressed disappointment, asserting the company’s compliance with consent protocols.

Uber has been targeted by the FTC for its controversial billing processes tied to its 2021-launched Uber One service, which offers subscribers perks such as free delivery and ride discounts for a monthly fee of $9.99 or an annual fee of $96. According to the FTC's complaint, customers face a confusing cancellation process involving up to 23 interface screens and 32 actions. In response, Uber contended that members can now cancel subscriptions within the app in under 20 seconds. Furthermore, the FTC has cited instances where customers alleged they were unknowingly enrolled in Uber One, asserting that they were charged despite not having active Uber accounts. Uber has denied any wrongdoing, maintaining that it does not enroll or charge users without their explicit consent. This legal action represents the FTC's first lawsuit against a prominent tech entity during the second term of President Donald Trump, highlighting ongoing scrutiny of major competitors like Uber and Meta in the tech landscape.