The U.S. Federal Trade Commission (FTC) has initiated a legal case against Uber, alleging that the company engaged in deceptive billing and cancellation practices related to its Uber One subscription service. The lawsuit, filed on Monday, highlights various customer complaints about unexpected charges for Uber One accounts. For instance, one customer reported being charged $9.99 monthly for several months despite not signing up for the service, while another was billed for an account despite never having used Uber’s services.
The FTC’s lawsuit claims that Uber misled consumers regarding the benefits and savings associated with the Uber One subscription, advertised at $9.99 per month. Specifically, it argues that the claimed $25 monthly savings for members did not account for the subscription fee. Moreover, the FTC asserts that Uber made it challenging for users to cancel their subscriptions despite promoting the service as easily cancelable without additional fees.
The lawsuit accuses Uber of implementing “dark patterns” to entice users to subscribe and then making the cancellation process overly complex. For example, joining the service was simple, often requiring just a few clicks, while canceling involved navigating through as many as 23 screens and performing up to 32 actions. This complexity increased as users neared the end of their subscription period. Some customers had to reach out to Uber support to cancel, but many found it difficult to access support.
The FTC has charged Uber with multiple violations under Section 5 of the FTC Act and the Restore Online Shoppers’ Confidence Act (ROSCA), including misrepresentation and unauthorized billing practices. In response, Uber maintains that the subscription sign-up and cancellation processes are compliant with the law. The company expressed its belief that the legal proceedings would confirm their stance, stating that cancellations can now be completed directly in the app in under 20 seconds. Uber has also updated its policy to allow cancellations within the app at any time, eliminating the previous requirement to contact the company within 48 hours of renewal.
