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The Federal Trade Commission (FTC) has initiated legal action against rideshare giant Uber, alleging deceptive business practices concerning its Uber One subscription service. According to a complaint lodged in a San Francisco federal court, the FTC highlights cases where consumers reportedly faced unexpected charges for the service, believing their subscriptions were already terminated, or encountered difficulties attempting to cancel their accounts.
The Uber One subscription service is priced at $10 per month. Subscribers gain access to various advantages, including discounts, complimentary delivery on Uber Eats orders, potential cashback, and additional benefits.
Allegations of Deceptive Practices
The FTC’s lawsuit contends that customers enrolling in free trials of Uber One faced substantial hurdles in terminating the service, resulting in their incurring unforeseen expenses.
Officials Speak Out
In a press statement, FTC Chairman Andrew N. Ferguson remarked, “Today, we’re alleging that Uber not only deceived consumers regarding their subscriptions but also rendered the cancellation process unreasonably burdensome for customers.”
Among the specific examples cited in the FTC’s filing are instances where canceling an Uber One subscription allegedly required navigating through 23 separate screens and performing 32 distinct actions.
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Uber Responds to Lawsuit
In response to the FTC’s action, a spokesperson for Uber stated that the company ensures consumers provide consent before signing up or incurring charges. The spokesperson asserted that Uber One cancellations can now be completed within the application at any time, typically taking users 20 seconds or less.
An Uber representative expressed disappointment that the FTC proceeded with this legal challenge, adding, “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.”
Separately, via email communication, Uber disputed specific points raised in the FTC’s complaint. The company contended that they clearly inform users regarding prospective charges and maintained that “Consumers who canceled were never charged additional fees.”
Broader Regulatory Focus on Subscriptions
The FTC has recently concentrated its regulatory efforts on subscription services, introducing guidelines demanding greater simplicity and ease in the cancellation process for companies.
Furthermore, California enacted legislation last year stipulating that consumers must be able to cancel such services with just a single click. These modifications were largely prompted by efforts to counteract increasingly complex strategies employed by companies to retain customers in paid service arrangements.