FTC Sues Uber Over 'Deceptive' Billing, Hard-To-Cancel Uber One Subscriptions

The Federal Trade Commission (FTC) has filed a lawsuit against Uber, accusing the ride-hailing company of using "deceptive" billing and cancellation practices linked to its Uber One subscription service.

According to the FTC, Uber charged people for the Uber One membership, which offers benefits like free delivery and ride discounts, without their clear consent. The agency also said that Uber made it too hard for users to cancel their subscription, even though the company advertised it as easy to cancel "anytime," as per the FTC's official website.

FTC Chairman Andrew Ferguson said in a statement that people are frustrated with being enrolled in unwanted subscriptions that are nearly impossible to cancel.

"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," he said, adding, "Today, we're alleging that Uber not only deceived consumers about their subscriptions, but also made it unreasonably difficult for customers to cancel."

FTC Details Uber's Alleged Tactics

In its complaint, the FTC has accused Uber of misleading customers with its Uber One subscription. It says Uber promised users savings of $25 a month, but didn't clearly explain that the subscription itself costs up to $9.99 monthly.

Important details were hidden in hard-to-read text, and some people said they were charged even without signing up — one even claimed they didn't have an Uber account. The FTC also says Uber charged users before their free trial ended, despite saying cancellations during the trial would be free.

When customers tried to cancel, the process was extremely difficult, sometimes requiring up to 23 screens and 32 steps. Users were asked to explain their reason for canceling, pushed to pause their membership, or offered deals to stay.

Some were told to contact customer support but weren't given any contact details, and a few reported being charged again while waiting for a response.

Uber Denies Allegations, Calls FTC Probe Unfair

Uber has denied the allegations made by the FTC. The company's legal team, which includes former FTC chair Tim Muris and former FTC commissioner Christine Wilson, said the investigation was rushed and unfair. They also claimed that the FTC's complaint was based on misunderstandings about Uber's subscription service.

"Uber does not sign up or charge consumers without their consent, and cancellations can now be done anytime in-app and take most people 20 seconds or less," the company said in a statement.

The lawsuit was filed in the U.S. District Court for the Northern District of California. It claims that Uber broke the rules of the FTC Act and the Restore Online Shoppers' Confidence Act.

This marks one of the first big legal actions against a major tech company led by Ferguson under the Trump administration. Notably, both Uber and its CEO Dara Khosrowshahi donated $1 million to Trump's inauguration fund.