What's happened
The FTC has filed a lawsuit against Uber, alleging deceptive practices related to its Uber One subscription service. The complaint claims Uber charged users without consent, misrepresented savings, and made cancellation difficult. The lawsuit follows numerous consumer complaints and aims to enforce clearer subscription practices.
What's behind the headline?
Key Issues in the FTC's Lawsuit
- Deceptive Practices: The FTC alleges Uber misled consumers about potential savings of $25 per month while charging $9.99 for the service, failing to account for subscription costs.
- Consent Violations: Many users reported being signed up without their knowledge, raising concerns about consent in subscription models.
- Cancellation Difficulties: The complaint highlights that users may need to navigate up to 23 screens and complete 32 actions to cancel, contradicting Uber's 'cancel anytime' policy.
Implications for Consumers
- Consumer Rights: This lawsuit underscores the importance of consumer rights in subscription services, potentially leading to stricter regulations.
- Industry Impact: If the FTC prevails, it could set a precedent for how subscription services operate, compelling companies to adopt clearer practices.
- Future of Uber One: The outcome may affect Uber's subscription model and its growth trajectory, especially as it claims a member base of 30 million worldwide.
What the papers say
The Independent reports that the FTC's complaint emphasizes Uber's alleged failure to deliver promised savings and the difficulty of cancellation, with Chairman Andrew Ferguson stating, "Americans are tired of getting signed up for unwanted subscriptions that seem impossible to cancel." In contrast, Uber maintains that its processes are clear and lawful, expressing disappointment over the lawsuit (AP News).
Business Insider highlights that users have reported being charged for Uber One without consent, with one individual stating they were billed despite not having an Uber account. This aligns with the FTC's claims of misleading practices. TechCrunch adds that the lawsuit follows the FTC's push for easier cancellation processes, reflecting a broader trend in consumer protection efforts.
Bloomberg succinctly summarizes the FTC's allegations, noting the burdensome cancellation process, while the NY Post provides context on Uber's previous legal challenges with the FTC, indicating a history of scrutiny regarding its business practices.
How we got here
The lawsuit stems from an investigation initiated by the FTC in 2024, focusing on subscription services and their cancellation processes. The FTC's new 'click to cancel' rule, effective May 14, 2025, aims to simplify subscription cancellations, reflecting growing consumer frustration with unwanted subscriptions.
Go deeper
- What are the implications for Uber's business model?
- How might this affect consumers using subscription services?
- What are the FTC's new rules on subscription cancellations?
Common question
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What Are the Main Claims in the FTC's Lawsuit Against Uber?
The Federal Trade Commission (FTC) has launched a lawsuit against Uber, raising serious allegations about its subscription practices, particularly concerning the Uber One service. This legal action has sparked widespread interest and concern among consumers and industry watchers alike. Below, we explore the key claims made by the FTC and what they could mean for Uber and its users.
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What Are the Allegations Against Uber's Subscription Service?
The FTC has filed a lawsuit against Uber, raising serious allegations about its Uber One subscription service. This legal action has sparked widespread interest and concern among consumers and industry watchers alike. Below, we explore the key questions surrounding this case and what it means for Uber's future.
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The Federal Trade Commission is an independent agency of the United States government whose principal mission is the enforcement of civil U.S. antitrust law and the promotion of consumer protection.
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The United States of America, commonly known as the United States or America, is a country mostly located in central North America, between Canada and Mexico.
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Uber Technologies, Inc. is an American multinational transportation company that provides ride-hailing services, courier services, food delivery, and freight transport. It is headquartered in San Francisco, California, and operates in approximately 70...