The U.S. Federal Trade Commission (FTC) has taken a significant step by filing a lawsuit against Uber, alleging that the ride-hailing giant has engaged in faulty billing practices surrounding its Uber One subscription service. The FTC claims that Uber charged customers for the service without fully securing their consent and created challenges for users attempting to cancel their subscriptions.
FTC Chairman Andrew Ferguson, an appointee from the Trump era, asserted that this lawsuit reflects the agency's commitment to protecting American consumers. Uber One was introduced in 2021, offering users various benefits such as no-fee delivery and discounts on rides for a monthly fee of $9.99 or $96 annually.
According to the FTC's complaint filed on Monday, the process for suspending these subscriptions can be excessively complicated, reportedly requiring consumers to navigate through as many as 23 screens and complete up to 32 steps to successfully cancel their membership. Uber, however, has refuted this claim. Spokesperson Ryan Thornton remarked, "Cancellations can now be done anytime in-app and take most people 20 seconds or less," asserting that the procedure has become significantly easier over time.
The FTC's lawsuit also points to consumer complaints about being enrolled in Uber One without their consent, including instances where individuals claimed they were charged despite not even having an Uber account. In response, Uber maintains that it does not enroll or charge users without their approval.
This legal action represents the FTC's first courtroom battle with a major tech company since President Trump began his second term earlier this year. Meanwhile, the agency continues to pursue its existing case against Meta, which is currently on trial and involves claims of maintaining a monopoly via acquisitions of Instagram and WhatsApp. Meta describes the FTC’s allegations as poorly conceived, emphasizing that the agency had previously approved those acquisitions.
