Uber Faces Regulatory Heat as FTC Targets Subscription Practices

Uber Technologies Inc. is under legal fire from the U.S. Federal Trade Commission (FTC), which alleges the company engaged in deceptive practices surrounding its Uber One subscription service. The lawsuit, filed Monday, accuses the ride-hailing and delivery giant of billing customers without proper consent and creating a cancellation process that the agency describes as excessively burdensome.

According to Bloomberg, the FTC claims Uber misled consumers about the benefits and savings of its Uber One membership while also making it unreasonably difficult to opt out of the service. The complaint highlights that users might need to navigate as many as 23 separate screens and perform up to 32 individual steps to cancel the subscription. These findings come amid a broader push by the agency to rein in companies using what regulators call “dark patterns” to trap users in recurring payments.

Per Bloomberg, Uber has denied the accusations, maintaining that customer enrollment and cancellation processes are both straightforward and compliant with legal standards. “We are disappointed that the FTC chose to move forward with this action,” a company spokesperson stated, adding that most users can now cancel the service in 20 seconds or less. Uber also asserted that it does not sign up or charge users without their explicit consent.

Read more: Uber and Lyft Face FTC Probe Over Alleged Collusion in NYC Pay Deal

The FTC’s case was approved by a 2-0 vote from its commissioners, with newly appointed member Mark Meador recused from the decision. The lawsuit also aligns with an earlier Bloomberg News report, which revealed the agency had been investigating Uber’s subscription practices since last year.

This lawsuit is part of a broader trend of increased scrutiny over subscription-based business models. The FTC has recently brought similar cases against major companies like Amazon and Adobe, alleging that they too created obstacles for customers attempting to end paid subscriptions.

In a separate matter, the agency is also examining whether Uber and competitor Lyft may have coordinated to suppress driver pay in New York City, an investigation that began during the final months of the Biden administration.

Source: Bloomberg