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FTC Files Lawsuit Against Uber Over Alleged Deceptive Subscription Practices
SAN FRANCISCO, CA – The Federal Trade Commission (FTC) initiated legal action against Uber Technologies on Monday, accusing the ride-hailing and delivery service of improperly enrolling consumers in its Uber One membership program and making misleading assertions about the benefits of the service. The lawsuit alleges that Uber engaged in deceptive tactics related to its Uber One subscription service, impacting numerous users.
Accusations of Unauthorized Enrollment and Misleading Claims
The subscription service, Uber One, charges users $9.99 monthly and promises reduced prices and waived fees for Uber’s ride-hailing and food delivery platforms.
However, the FTC contends that Uber misrepresented potential savings to customers, falsely suggesting users would save around $25 per month with Uber One. Furthermore, the regulatory body asserts that Uber deceived customers regarding the ease of canceling their subscriptions. These allegations are central to the FTC’s lawsuit, which was lodged in a San Francisco court.
FTC Chairman Ferguson Condemns “Unwanted Subscriptions”
“Consumers are frustrated by unwanted subscriptions that are seemingly impossible to terminate,” declared FTC Chairman Andrew Ferguson. “The FTC is committed to protecting consumers from deceptive practices and is taking action to address these issues.”
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Uber Denies Wrongdoing
In response to the FTC’s lawsuit, Uber spokesperson Noah Edwardsen stated that the company does not enroll or bill customers without their explicit permission.
“We are disappointed by the FTC’s decision to proceed with this matter. We firmly believe, and are confident the courts will concur, that Uber One’s enrollment and cancellation procedures are transparent, straightforward, and fully compliant with both the letter and spirit of the law,” Edwardsen asserted.
Past FTC Scrutiny of Uber’s Practices
This is not the first time Uber has faced scrutiny from the Federal Trade Commission.
Previous Settlements with the FTC
In 2017, Uber reached a resolution with the FTC regarding accusations that the company made deceptive claims concerning user privacy and data security. Subsequently, in 2018, Uber agreed to a $20 million settlement to resolve FTC allegations that it overstated prospective earnings to attract new drivers.
Data Breach Disclosure Settlement
In 2022, the company settled potential criminal charges by acknowledging that its employees failed to inform the FTC about a significant data breach in 2016. This breach compromised the personal information of 57 million riders and drivers.