The FTC has filed a lawsuit against ride-sharing and delivery giant Uber, alleging that the company engaged in deceptive billing and cancellation practices related to its Uber One subscription service.
The FTC has taken legal action against Uber, one of the world’s leading ride-sharing and delivery companies. The lawsuit, filed on Monday, accuses Uber of violating the FTC Act and the Restore Online Shoppers’ Confidence Act through misleading practices associated with its Uber One subscription service.
According to the complaint, Uber provided deceptive information to consumers about the benefits of Uber One, which costs $9.99 per month or $96 annually. The FTC alleges that the company advertised the service as offering “savings of $25 a month” without properly calculating the monthly cost of the membership. Furthermore, the agency claims that Uber charged consumers before their billing date, adding to the deceptive nature of the service.
The FTC also took issue with Uber’s cancellation process for the subscription service. The complaint states that Uber made it “extremely difficult” for users to cancel their Uber One membership. Some users reported being directed to contact customer service representatives to proceed with cancellation but were given no means to reach them. Additionally, the FTC noted that some users claimed they were charged for an additional billing cycle even after successfully canceling their subscription.
FTC Chair Andrew Ferguson emphasized the agency’s commitment to protecting consumers, stating, “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.” Uber and its CEO, Dara Khosrowshahi, have reportedly made significant donations to President Trump’s inaugural fund, alongside numerous other tech companies and executives seeking to establish relationships with the incoming administration.
In response to the lawsuit, Uber spokesperson Noah Edwardsen expressed disappointment but confidence in the company’s position. Edwardsen stated, “Uber One’s sign-up and cancellation processes are clear, simple, and follow the letter and spirit of the law. Uber does not sign up or charge consumers without their consent, and cancellations can now be done anytime in-app and take most people 20 seconds or less.”
Uber One, launched in 2021, boasts around 30 million subscribers as of December, according to the company’s latest annual report. The service offers benefits such as fee-free delivery and discounts on certain ride bookings, delivery, and pickup orders.
As the case progresses, the FTC remains committed to closely scrutinizing major tech companies. FTC Chair Ferguson has made it clear that “Big Tech” is one of the agency’s top priorities under the Trump-Vance administration.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
