WASHINGTON, D.C. — The Federal Trade Commission (FTC) has filed a lawsuit against Uber Technologies, accusing the company of deceptive practices tied to its Uber One subscription service. The FTC alleges that Uber charged customers without consent, misrepresented potential savings, and made the cancellation process overly burdensome despite advertising the service as “cancel anytime.”
FTC Chairman Andrew N. Ferguson emphasized the importance of holding companies accountable, stating, “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 highlights several key allegations about Uber’s practices:
- False Savings Promises: Uber claimed customers could save $25 a month with the Uber One subscription but failed to disclose the subscription cost of up to $9.99 per month when calculating those savings.
- Unauthorized Enrollment: Some consumers reported being charged for the service without their consent, including instances where individuals did not even have an active Uber account.
- Free Trial Charges: Users who signed up for free trials alleged they were charged before the trial period ended, contrary to Uber’s promise of a no-charge cancellation during the trial.
- Complicated Cancellation Process: Consumers faced a process involving up to 32 actions and 23 screens, with roadblocks such as repeated offers, mandatory explanations for cancellation, and instructions to contact customer support with no clear support method provided.
These practices, according to the FTC, violate both the FTC Act and the Restore Online Shoppers’ Confidence Act (ROSCA), which mandate transparency in subscription terms, obtaining clear consent from consumers before charging fees, and offering an easily accessible method for cancellations.
The lawsuit, filed in the U.S. District Court for the Northern District of California, marks a significant move by the FTC to curb alleged corporate misconduct in subscription billing and transparency. The Commission vote to authorize the complaint was 2–0–1, with one recusal.
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