## Uber Faces FTC Lawsuit Over Alleged Unauthorized Subscription Charges and Cancellation Hurdles
The Federal Trade Commission (FTC) has filed a lawsuit against Uber, accusing the ride-hailing giant of deceptive practices related to its Uber One subscription service. The lawsuit, filed Monday, alleges that Uber charged customers for Uber One subscriptions without their explicit consent. Furthermore, the FTC claims Uber failed to deliver the promised savings associated with the subscription and intentionally made it difficult for users to cancel, despite advertising a “cancel anytime” policy.
Uber has vehemently denied these allegations, accusing the FTC of rushing the investigation and basing its claims on unsubstantiated information. “We are disappointed that the FTC chose to move forward with this action, but are confident that the courts will agree with what we already know: Uber One’s sign-up and cancellation processes are clear, simple, and follow the letter and spirit of the law,” an Uber spokesperson stated. They further asserted that cancellations can be completed “anytime in-app and take most people 20 seconds or less.”
This lawsuit arrives as the FTC, under previous leadership, has been increasingly focused on subscription service cancellation processes. The agency finalized its “click to cancel” rule in October 2024, mandating that companies make canceling a subscription as straightforward as signing up. The rule, slated to take effect on May 14th, aims to combat the often frustrating and convoluted processes consumers face when trying to unsubscribe from services.
FTC Chairman Andrew Ferguson stated, “Americans are tired of getting signed up for unwanted subscriptions that seem impossible to cancel. The Trump-Vance FTC is fighting back on behalf of the American people.”
The FTC’s complaint alleges that Uber misled customers by promising savings of $25 per month through the Uber One subscription. However, the FTC contends that Uber did not factor in the subscription cost (up to $9.99/month) when calculating these savings. The complaint also highlights the use of “small, greyed out text which consumers can easily miss,” to obscure crucial information about the subscription.
The lawsuit further accuses Uber of automatically charging consumers who signed up for a free trial before their billing date. The cancellation process itself is described as “extremely difficult,” potentially requiring users to navigate “as many as 23 screens and take as many as 32 actions to cancel.” These steps reportedly include repeatedly explaining the reason for cancellation and resisting various attempts by Uber to pause or retain the membership.
The FTC statement further claims that some users were directed to contact customer support for cancellation but were provided with no means to do so. Others reported being charged for an additional billing cycle after requesting cancellation and awaiting a response from customer support. Uber has acknowledged that, previously, users wishing to cancel within 48 hours of signing up had to contact customer support. The company claims this policy has been updated to allow in-app cancellation.
The FTC is seeking a court order to prevent Uber from continuing its alleged deceptive practices and to compel the company to provide monetary relief to affected consumers.
Former FTC chair Tim Muris, who represented Uber during the investigation, criticized the agency’s process, alleging a lack of thorough investigation and misunderstandings of facts and law. Uber’s current outside counsel, Christine Wilson, echoed these concerns, highlighting the “unconventional nature of the rushed investigative process” and the addition of “new and unvetted allegations at the last minute.”
In 2024, Uber One boasted a membership base of 30 million across 34 countries, with a reported year-over-year growth rate of approximately 60%. A year prior, Uber CEO Dara Khosrowshahi estimated that Uber One’s membership fees would exceed $1 billion in 2024. The outcome of this lawsuit could significantly impact Uber’s subscription model and the regulatory landscape for subscription services across various industries.