FTC Files Lawsuit Against Uber Over Allegations of Subscription Misleading Practices

The Federal Trade Commission (FTC) has initiated legal action against Uber, alleging that the ride-hailing giant has engaged in deceptive practices with its subscription service, Uber One. The FTC claims that Uber has made false promises regarding savings and has made the cancellation process unduly complicated for users.

Uber One, which costs $10 per month, is marketed as offering various benefits, including free delivery on Uber Eats and discounts on ride bookings. However, the FTC contends that Uber has misrepresented the savings users can expect, claiming potential monthly savings of $25 while failing to account for the subscription fee itself. Furthermore, the agency highlights that charges have been deducted during the free trial period, raising concerns about the transparency of the service.

According to the FTC, the cancellation process for Uber One is excessively difficult, requiring users to navigate through as many as 23 screens and complete 32 actions to successfully unsubscribe. In some instances, users report being charged even after they believed they had canceled their subscriptions. The FTC's lawsuit marks a significant move as it is the first time the agency has taken legal action against a major tech company under the Biden administration.

Uber has responded to the lawsuit, expressing disappointment and asserting that the processes for subscribing and canceling Uber One are straightforward and compliant with legal standards. A spokesperson for the company emphasized that the subscription service is designed to be user-friendly.

In a broader context, the FTC's action against Uber reflects growing frustration among consumers regarding subscription services that are challenging to cancel. The agency's statement indicated that the commission is taking a stand against practices that it deems unfair, particularly those that impose unwanted subscriptions on consumers.

The lawsuit also draws attention to the connections between Uber and political figures, noting that both the company and its CEO, Dara Khosrowshahi, contributed significant amounts to Donald Trump's inauguration. This detail underscores the complexities of the regulatory environment surrounding major tech companies, particularly as they navigate relationships with government officials.

As the legal proceedings unfold, Uber maintains that it is confident in its ability to resolve the issues raised in court, insisting that its policies and practices are in line with expectations and regulations.