US Federal Trade Commission files legal case against Uber over subscription service claims
- Perry Richardson
- 12 minutes ago
- 2 min read
Uber is facing legal action in the United States after the Federal Trade Commission (FTC) accused the company of enrolling users into a subscription service without permission and making it unnecessarily difficult for customers to cancel.
The complaint, filed in the U.S. District Court for the Northern District of California, claims that Uber’s practices around its Uber One subscription service misled users on multiple fronts. The FTC says the company failed to obtain clear consent before billing, charged users prematurely, and misrepresented the ease of cancelling.
According to the legal filing, Uber claimed users could save around $25 per month with Uber One, without making clear that the subscription itself could cost up to $9.99 per month. Key information, the FTC says, was hidden in small or greyed-out text, which was easy to overlook. Some customers reported being charged despite never signing up or even having an account.
The complaint also alleges that some users were billed before their free trial period ended. Despite being told they could cancel anytime during the trial without charge, several customers say they were automatically charged.
Once subscribed, attempting to cancel reportedly proved challenging. Users could be made to click through dozens of screens, explain why they wanted to cancel, or be encouraged to pause instead. Some were asked to contact customer support, but weren’t given any way to do so. Others said they were charged for another cycle while waiting for a response.
The FTC argues that these tactics breach the FTC Act and the Restore Online Shoppers’ Confidence Act, which require companies to be upfront about subscription terms, secure clear agreement from customers, and offer a straightforward way to cancel.
In response, Uber has said it intends to contest the claims and believes the FTC has misrepresented the facts in key areas. The company says it does not sign up or charge consumers without consent, and that users can cancel subscriptions within the app at any time. According to Engadget, Uber acknowledged that previously, cancellations had to be made through customer support at least 48 hours before renewal, but stated that is no longer required.
The case is now with the court for decision.
Andrew N. Ferguson, FTC Chairman, said: “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. Today, we’re alleging that Uber not only deceived consumers about their subscriptions, but also made it unreasonably difficult for customers to cancel.”
