The Federal Trade Commission (FTC) has initiated a lawsuit against ride-hailing giant Uber, alleging the company has employed deceptive billing practices regarding its subscription service. According to the FTC, Uber's Uber One subscription, which launched in 2021, has allegedly charged customers without proper consent and has created obstacles for users seeking to cancel their subscriptions. FTC Chairman Andrew Ferguson emphasized the agency’s commitment to protecting consumer rights, stating, “The Trump-Vance FTC is fighting back on behalf of the American people.”
US FTC Takes Legal Action Against Uber Over Subscription Controversies
US FTC Takes Legal Action Against Uber Over Subscription Controversies
In a significant move, the US FTC has launched a lawsuit against Uber, accusing the company of misleading subscription practices.
Uber has denied the allegations, expressing disappointment over the FTC's decision to proceed with the lawsuit. The Uber One subscription, priced at $9.99 per month or $96 annually, promises users benefits including fee-free delivery and discounted rides. The FTC claims that users face significant challenges in canceling the service, citing up to 23 screens and 32 required actions. In response, Uber asserts that cancellations can now be completed swiftly within the app. The FTC's lawsuit also highlights reports of customers being enrolled in Uber One without their explicit consent, a claim Uber has refuted. This legal pursuit marks the FTC's first major action against a U.S. tech firm since President Trump’s re-election in January.
