The Federal Trade Commission (FTC) has filed a lawsuit against Uber, accusing the company of charging customers for its Uber One subscription service without consent, failing to provide promised savings, and complicating the cancellation process despite promoting a "cancel anytime" policy.
FTC Chairman Andrew N. 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. Today, we’re alleging that Uber not only deceived consumers about their subscriptions, but also made it unreasonably difficult for customers to cancel."
The complaint alleges deceptive practices by Uber, such as misleading consumers about purported savings and failing to account for the subscription costs in those savings. Some consumers were reportedly charged without having subscribed or even possessing an Uber account. Additionally, users were charged before the end of a free trial period, contrary to Uber's promise of free cancellation during such trials.
Customers facing hurdles in canceling their subscriptions reportedly had to navigate numerous screens and complete multiple steps. Furthermore, they were prompted to provide a reason for cancellation, given offers to stay, or wrongly advised to contact customer support for cancellation without guidance on how to do so. Some users were also charged for an additional billing cycle while waiting for a response from support.
The FTC claims Uber's billing and cancellation practices violate both the FTC Act and the Restore Online Shoppers' Confidence Act (ROSCA), which mandate transparent service terms and easy cancellation of recurring subscriptions.
The Commission's decision to file the complaint saw a 2-0-1 vote with Commissioner Mark R. Meador recused. The complaint was lodged in the U.S. District Court for the Northern District of California.
According to the FTC, a complaint is filed when there is "reason to believe" that the defendants are, or might be, violating the law, with proceedings deemed in the public interest. The court will ultimately decide the case.
Leading attorneys in this case are Stephanie Liebner, James Doty, and Paul Mezan from the FTC’s Bureau of Consumer Protection.
The FTC's mission is to foster competition and safeguard consumer rights, offering resources and advice on consumer-related issues at consumer.ftc.gov. Fraud or scams can be reported via ReportFraud.ftc.gov. The FTC also provides updates through its social media channels, consumer alerts, and newsletters.
