The Federal Trade Commission (FTC) filed a lawsuit against Uber Technologies Inc. on Monday, alleging that the company enrolled consumers into its Uber One subscription service without their consent and made cancellation difficult.
Uber One, priced at $9.99 per month or $96 annually, offers benefits like cashback on rides and discounts on food deliveries.
The FTC’s complaint asserts that Uber misrepresented potential savings by not accounting for the subscription cost and used small, hard-to-read text to obscure key information.
Consumers reported being charged after declining enrollment prompts or even without having an Uber account. The agency also highlighted that canceling the service could require navigating up to 23 screens and contacting customer support, especially within 48 hours of the billing date.
FTC Chairman Andrew N. Ferguson stated, “Americans are tired of getting signed up for unwanted subscriptions that seem impossible to cancel.”
Uber denies the allegations, asserting that its sign-up and cancellation processes are clear, simple, and lawful. The company noted that cancellations can now be completed in-app in under 20 seconds and that the previous requirement to contact customer service for last-minute cancellations has been removed.
This lawsuit adds to Uber’s history of legal challenges with the FTC, including a 2017 settlement over deceptive privacy practices and a $20 million payment in 2018 related to exaggerated driver earnings.
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