The Federal Trade Commission sued Uber Technologies on Monday, accusing Uber One subscribers of signing up without knowledge and making deceptive claims about the service.
The service costs $9.99 per month and offers discounts on Uber ride appeals and fees related to food delivery apps.
Uber falsely claimed that users would save around $25 a month through the service and deceive users how easy it is to cancel, the FTC said in a lawsuit filed in San Francisco.
“Americans are tired of signing up for unnecessary subscriptions that they think are impossible to cancel,” said FTC Chairman Andrew Ferguson. “The Trump Vance FTC is fighting back on behalf of the Americans.”
Uber spokesman Noah Edwardsen said the company would not register or charge customers without consent.
“We are disappointed that the FTC has chosen to move this action forward, but we are confident that the court will agree to what we already know. Uber’s sign-up and cancellation process is clear and simple, and follows the letters and spirit of the law,” he said.
Uber has been entangled with FTC several times in the past.
In 2017, the ride company resolved the FTC’s claims of deceptive privacy and data security claims. The following year, he agreed to pay $20 million to resolve the FTC’s claim.
The company dodged criminal charges in a settlement in 2022 that admitted that it failed to notify the FTC of a 2016 data breach that affected 57 million passengers and drivers.
