The Federal Trade Commission (FTC) has filed a lawsuit against ride-hailing giant Uber Technologies, Inc., accusing the company of charging customers for its Uber One subscription without proper consent and intentionally making the cancellation process burdensome.
In a statement released Monday, the FTC said that Uber misled consumers with false promises of savings and enrolled users in paid subscriptions without clear disclosure or authorization. The lawsuit also claims Uber continued billing users even after they attempted to cancel and imposed unreasonable hurdles to exit the program.
“Americans are tired of getting signed up for unwanted subscriptions that seem impossible to cancel,” said FTC Chairman Andrew N. Ferguson. “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.”
FTC Press Release
Key Allegations Against Uber:
- Deceptive Cost-Savings Claims: Uber allegedly advertised a monthly savings of $25 with the Uber One membership but failed to account for the $9.99/month subscription cost, misleading consumers about the actual benefits.
- Unauthorized Enrollment & Early Billing: Some users claimed they were charged without creating an Uber account, while others were billed before their free trial ended—despite Uber’s “cancel anytime” claim.
- Cancellation Roadblocks: Cancelling Uber One could require navigating up to 23 screens and performing 32 separate actions. In some cases, users were told to contact support without being given contact options. Some reported being billed again even after attempting cancellation.
The FTC says these practices violate the FTC Act and the Restore Online Shoppers’ Confidence Act (ROSCA), which mandate clear subscription disclosures, explicit consumer consent, and easy cancellation options.
The lawsuit was filed in the U.S. District Court for the Northern District of California. The Commission’s vote to authorize the legal action was 2-0, with Commissioner Mark R. Meador recused.
Attorneys Stephanie Liebner, James Doty, and Paul Mezan from the FTC’s Bureau of Consumer Protection are leading the case.
The case reflects the agency’s intensified crackdown on “dark patterns” — manipulative design tactics used by companies to trap consumers in recurring subscriptions.
Uber has not yet issued a public statement in response to the lawsuit.
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