In brief
The FTC lawsuit is the first against a major tech firm since Trump's re-election in January 2021.
The US Federal Trade Commission (FTC) has initiated a lawsuit against Uber Technologies, alleging that the ride-hailing and food delivery giant has engaged in deceptive billing practices and is making it difficult for consumers to cancel subscriptions. The lawsuit asserts that Uber charged customers for its Uber One subscription service without obtaining their consent and implemented a complicated cancellation process. "The Trump-Vance FTC is fighting back on behalf of the American people," stated FTC Chairman Andrew Ferguson, a Trump appointee.Uber has responded by firmly denying the allegations, expressing disappointment at the FTC's decision to pursue legal action. The Uber One subscription service launched in 2021 offers perks such as fee-free deliveries and discounts on rides for $9.99 per month or $96 annually. The FTC's complaint highlights that consumers must navigate as many as 23 screens and perform up to 32 actions to attempt canceling their subscriptions. Uber spokesman Ryan Thornton refuted this claim, asserting that cancellations can now be performed in-app and typically take less than 20 seconds. He noted that previously, a customer needed to contact support within 48 hours of the billing cycle to cancel, but that is no longer the case.The FTC also contends that many users were enrolled in Uber One without their explicit consent, citing cases of consumers being charged despite not having Uber accounts. Uber maintains that it does not sign up or charge individuals without their permission.This legal action against Uber marks the FTC's inaugural lawsuit against a prominent American technology firm since President Donald Trump began his second term in January. The agency's ongoing case against Meta, which was initiated during the previous Trump administration, has now entered its second week in the courtroom. The FTC asserts that Meta has established a monopoly in social media through its acquisitions of Instagram in 2012 and WhatsApp in 2014, claims that Meta argues are unfounded, highlighting that the FTC had previously approved these transactions.
