The Federal Trade Commission (FTC) filed a lawsuit against Uber on Monday, accusing the ride-hailing and delivery company of enrolling customers in its Uber One subscription service without proper consent. The lawsuit also alleges that Uber failed to provide the advertised savings and made it unnecessarily difficult for users to cancel their subscriptions, despite promoting a “cancel anytime” policy.
Uber has denied the accusations, claiming the FTC rushed the investigation and relied on “unvetted allegations.”
The suit follows broader efforts by the FTC to crack down on misleading subscription practices. Under the leadership of Chair Lina Khan, the agency finalized its “click to cancel” rule in October 2024, which requires companies to make unsubscribing as easy as signing up. The rule, which has faced opposition from some industry groups, is expected to take effect on May 14.
“Americans are tired of getting signed up for unwanted subscriptions that seem impossible to cancel,” FTC Chairman Andrew Ferguson said. “The Trump-Vance FTC is fighting back on behalf of the American people.”
According to the FTC’s complaint, Uber misled customers with a promised $25 monthly savings from Uber One. However, the company did not factor in the cost of the subscription—up to $9.99 per month—when making those claims. Additionally, the FTC says important details were hidden in small, hard-to-read text that many users likely missed.
The commission also alleges that customers who signed up for a free trial were charged automatically before their trial ended. Canceling, the complaint says, could require navigating up to 23 screens and completing as many as 32 separate steps, including responding to prompts urging users to pause their subscription or consider special offers before finalizing cancellation. Some users reported having to contact customer support without being given a way to do so and were still charged for another billing cycle while waiting for a response.
Uber responded by stating that it previously required users to contact customer service within 48 hours of sign-up to cancel, but that policy has since been updated. The company did not specify when the change was made, though TechCrunch has reached out for clarification.
The FTC is asking the court to prohibit Uber from continuing what it calls deceptive business practices and to require the company to provide monetary relief to affected customers.
In a statement, an Uber spokesperson said: “We are disappointed that the FTC chose to move forward with this action, but are confident that the courts will agree with what we already know: 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.”
Tim Muris, a former FTC chair who represented Uber during the investigation, criticized the agency for what he called a superficial review of the facts and law. Christine Wilson, Uber’s current outside counsel, echoed that sentiment, saying the rushed process and last-minute additions to the complaint undermined the FTC’s traditionally rigorous and fair approach.
As of 2024, Uber One has grown to 30 million members across 34 countries. The company reports a 60% year-over-year growth rate, with CEO Dara Khosrowshahi estimating that subscription fees from Uber One could surpass $1 billion this year.
