Uber Technologies is facing a lawsuit from the Federal Trade Commission for deceptive billing and subscription practices regarding its Uber One service. The FTC alleges that Uber enrolled consumers without their consent, failed to deliver promised savings, and created significant barriers to canceling the service despite claims of a "cancel anytime" policy. According to the complaint, Uber enticed users with the promise of $25 in monthly savings. However, the company did not account for the $9.99 monthly subscription fee when calculating those savings, misleading consumers about the value of the service. Furthermore, many users reported being enrolled in Uber One without their consent, with one consumer even saying they were charged despite not having an Uber account.
Additionally, the FTC claims that Uber charged users before their free trial period ended, contradicting its "cancel at no charge" promise. For consumers attempting to cancel their subscriptions, the process was made unnecessarily complex, with some forced to navigate as many as 23 screens and complete up to 32 actions. When users tried to proceed with cancellation, Uber presented offers to stay or required them to explain why they wanted to cancel. In some cases, customers were charged for an additional billing cycle after requesting a cancellation. The FTC argues that Uber’s actions violate the FTC Act and the Restore Online Shoppers' Confidence Act, which mandate clear disclosures, consumer consent before charges, and an easy cancellation process. The lawsuit has been filed in the U.S. District Court for the Northern District of California, and the case will be decided by the court.
