21 States Join FTC Lawsuit Targeting Uber’s Subscription Billing and Cancellation Practices

Uber said Tuesday (Dec. 16) that a Federal Trade Commission lawsuit that was joined Monday (Dec. 15) by 21 states and the District of Columbia is “misguided” and would “upend how virtually every modern subscription service operates.”

The FTC sued Uber in April, alleging that the rideshare and delivery company engaged in deceptive billing and cancellation practices related to its Uber One subscription.

In an amended complaint filed Monday (Dec. 15), the FTC, 21 states and the District of Columbia allege that Uber charged consumers for its subscription without their consent, failed to deliver promised discounts and promotions such as $0 delivery fees, and made it “exceedingly difficult” for users to cancel the subscription, the FTC said in a press release .

The amended complaint seeks civil penalties for alleged violations of the Restore Online Shoppers’ Confidence Act and state laws, per the release.

District of Columbia Attorney General Brian L. Schwalb said in a Tuesday press release : “Uber enrolled users into its Uber One subscription service without their consent and then made it nearly impossible for them to cancel. Particularly when costs of living are higher than ever, no one should ever be stuck paying for a subscription they do not want.”

When announcing the original lawsuit in April, FTC Chairman Andrew N. Ferguson said in a press release: “Americans are tired of getting signed up for unwanted subscriptions that seem impossible to cancel.”

Reached by PYMNTS after Monday’s announcement of the amended complaint, Uber said in an emailed statement that the lawsuit is “misguided” and that the company will “vigorously defend these claims in court.”

Uber said in its statement that it stopped requiring consumers to contact support to cancel a subscription in December 2024, currently enables most cancellations to be done in the app in 20 seconds or less, does not sign up or charge consumers without their consent, and shows material disclosures on the same screen as the option to choose payment method.

“If this lawsuit were to succeed, it would upend how virtually every modern subscription service operates,” Uber said in its statement. “Uber One’s sign-up and cancellation processes are clear, simple, and follow the letter and spirit of the law. Uber does not sign up or charge consumers without their consent, and cancellations can be done anytime in-app and take most people 20 seconds or less.”