FTC Lawsuit Targets Uber’s Subscription Service, Alleging Deceptive Practices

The Federal Trade Commission filed a lawsuit Monday (April 21) against Uber, alleging the company violated laws with deceptive billing and cancellation practices.

The FTC’s complaint targeted the Uber One subscription service and alleged the company charged consumers for the service without their consent, failed to deliver promised savings and made it difficult for users to cancel the service, the agency said in a Monday press release.

“Americans are tired of getting signed up for unwanted subscriptions that seem impossible to cancel,” FTC Chairman Andrew N. Ferguson said in the release.

Reached by PYMNTS, an Uber spokesperson said in an emailed statement that the company’s processes “follow the letter and spirit of the law.”

“We are disappointed that the FTC chose to move forward with this action but are confident that the courts will agree with what we already know: Uber One’s sign-up and cancellation processes are clear, simple, and follow the letter and spirit of the law,” the statement said. “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.”

In its complaint, the FTC alleged that Uber violated the FTC Act and the Restore Online Shoppers’ Confidence Act (ROSCA) by promising savings that the service does not deliver, obscuring material information about the subscription, enrolling consumers without their consent, charging customers before the free trial ended, and making it “extremely difficult” to cancel, according to the agency’s press release.

In the statement provided to PYMNTS, Uber countered that it shows material disclosures on the same screen as the option to choose a payment method, does not sign up or charge customers without their consent, enables cancellations in-app in 20 seconds or less, and allows cancellations in the app at any time.

It was reported in November that Uber said it received inquiries from the FTC about its Uber One policies and was cooperating with the investigation.

In February, the company said during an earnings call that it added 5 million members to Uber One during the fourth quarter, bringing its membership program’s total to 30 million.

The FTC reported in March that its law enforcement actions resulted in $337.3 million in refunds to consumers in 2024, up from $324 million in 2023.