FTC Files Lawsuit Against Uber for Deceptive Practices in Uber One Subscriptions


Struggling to Terminate Your Uber One Membership? You’re Not Alone, According to the FTC

If you’ve found it difficult to terminate your Uber One subscription, you’re not the only one — and now the U.S. government is getting involved.

On Monday, the Federal Trade Commission (FTC) initiated a lawsuit against Uber, accusing the rideshare and delivery service of employing misleading billing and cancellation strategies concerning its Uber One subscription service.

The FTC alleges that Uber misrepresented the advantages of Uber One, which costs $9.99 monthly and claims to offer perks such as discounts on rides and food deliveries. However, the lawsuit contends that users were frequently billed without their awareness or approval — and encountered considerable obstacles when attempting to unsubscribe.

One customer mentioned in the lawsuit stated, “I checked my credit card statement and realized that Uber Eats had been charging $9.99 for an Uber One account for the last 8 months. I have never registered for this service.” Another remarked, “I don’t possess an Uber account and never have, but I am being billed a recurring fee of $9.99 for Uber One. I don’t even know how they obtained my debit card information.”

Why Is the FTC Taking Action Against Uber?

The FTC asserts that Uber misrepresented the worth of Uber One, asserting users could save $25 every month without considering the $9.99 charge. “These assertions are inaccurate,” the lawsuit claims. “Numerous consumers do not actually save $25 a month by utilizing Uber One… Uber’s savings assertion presumes that the subscription is free; the claimed savings does not factor in any expenses.”

The agency also contends that Uber misled users by promoting the ability to cancel “at any time” without “additional charges.” In truth, some users were billed before their free trial concluded, and cancelling the subscription turned out to be much more complicated than advertised.

“Americans are fed up with being signed up for unwanted subscriptions that appear to be impossible to cancel,” stated FTC Chairman Andrew N. Ferguson in a declaration. “Today, we’re asserting that Uber not only misled consumers about their subscriptions but also made it unreasonably challenging for customers to terminate.”

A Labyrinth of Clicks to Terminate

The FTC accuses Uber of utilizing “dark patterns” — manipulative design techniques — to facilitate sign-ups for Uber One while complicating the cancellation process. For example, users could initiate a free trial with just a few taps, but cancelling could entail navigating through as many as 23 screens and executing up to 32 distinct actions.

In one instance referenced in the lawsuit, users were presented with two choices: “Start saving” or “Cancel.” Selecting “Start saving” enrolled them in Uber One and triggered recurring payments. However, the “Cancel” option was unclear — it was not evident whether it would cancel the subscription, the ride, or the delivery.

Even when users attempted to cancel, Uber reportedly complicated the process the nearer they approached their renewal date. The company would prompt users to justify their cancellation, propose pausing their membership instead, or provide incentives to remain.

Some users resorted to contacting Uber customer support to cancel — but were not provided with a straightforward method to do so. Others found themselves billed while still attempting to cancel.

What the FTC Is Accusing Uber Of

The FTC’s lawsuit encompasses five allegations of breaching Section 5 of the FTC Act and the Restore Online Shoppers’ Confidence Act (ROSCA). These involve misrepresentation and charging consumers without appropriate consent.

Uber, however, refutes any allegations of misconduct.

In a statement to Mashable, an Uber representative expressed, “We are displeased that the FTC opted to pursue this action, but we are confident that the courts will recognize what we already know: Uber One’s sign-up and cancellation processes are clear, straightforward, and compliant with the law.”

The company also noted that it no longer necessitates users to reach out to customer support for cancellation within 48 hours of renewal. Now, Uber states, users can cancel directly within the app anytime — and that the process typically takes most individuals 20 seconds or less.

The FTC’s case against Uber forms part of a larger initiative to combat misleading subscription practices, as regulators strive to safeguard consumers from being ensnared in services they did not intentionally enroll in — or cannot easily exit.