FTC Takes Action Against Uber for Deceptive Billing & Cancellation Practices

Key Takeaways

• Unwanted Enrollment: The FTC claims Uber signed up consumers for Uber One without their consent, making it hard for them to even realize they were subscribed.
• Bait-and-Switch Savings: Despite promising savings of $25 a month, Uber did not factor in the subscription cost when calculating the benefit, leaving customers in the dark.
• Cancellation Nightmare: When users tried to cancel, they faced confusing, multi-step hurdles that felt more like a runaround than a simple opt-out process.
• Legal Implications: Uber’s alleged behavior violates key consumer protection laws, including the FTC Act and ROSCA, which require clear terms and easy cancellation options.
• FTC’s Consumer Commitment: The FTC continues to fight on behalf of consumers, taking aim at companies like Uber that make subscription services harder to navigate and understand.

Deep Dive

The Federal Trade Commission (FTC) has filed a lawsuit against Uber, accusing the ridesharing giant of misleading consumers with its Uber One subscription service. The complaint, which was filed today, claims that Uber signed up customers for its paid service without their consent, charged them for benefits that didn’t quite add up, and made it nearly impossible to cancel once they realized the service wasn’t what they were promised.

The FTC’s lawsuit paints a picture of a company that played fast and loose with consumer trust. Uber One, which Uber marketed as a subscription offering significant monthly savings, promised customers $25 in savings each month. However, the fine print told a different story. Uber neglected to account for the $9.99 monthly cost of the subscription in these savings calculations. The real kicker? Many users were allegedly signed up for Uber One without their knowledge, one person even reported being charged for the service despite never having an Uber account.

But it wasn’t just the sneaky sign-ups that raised eyebrows. According to the FTC, once customers signed up for a free trial, some were charged before the trial period had ended, defying Uber's own "cancel anytime" guarantee. The confusion didn’t stop there. When users tried to cancel their subscriptions, they found themselves on a maze of 23 screens and 32 actions just to opt out. For some, trying to cancel felt more like trying to escape an intricate video game, only to be repeatedly asked if they were sure about ending their membership, with offers to “pause” or “stay” instead. Others were told to contact customer support, only to be given no direct way to do so, and even those who managed to reach out were reportedly charged for another month while waiting for a response.

FTC Chairman Andrew N. Ferguson pulled no punches in his statement about Uber's practices, saying, “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.”

What’s at Stake

This lawsuit goes beyond consumer frustration. The FTC argues that Uber violated two significant laws: the FTC Act and the Restore Online Shoppers' Confidence Act (ROSCA). ROSCA, in particular, requires online services to clearly disclose subscription terms, secure proper consumer consent before charging, and ensure that customers have an easy, straightforward way to cancel a subscription. Uber’s actions, according to the FTC, ticked none of these boxes.

The legal battle is just beginning, with the FTC’s complaint now filed in the U.S. District Court for the Northern District of California. The next steps will be decided by a judge, but for now, Uber’s deceptive billing and cancellation practices are under intense scrutiny.

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