Uber and Waymo are set to start self-driving operations in Austin, Texas.
The Federal Trade Commission (FTC) is targeting Uber’s Uber One subscription service in a new lawsuit against the ride-hailing company.
The agency revealed on Monday that it had initiated a lawsuit against Uber, asserting that the company violated the FTC Act and the Restoration Online Confidence Act (ROSCA) due to “deceptive claims and cancellation practices” associated with Uber One.
The lawsuit requests that the U.S. District Court impose permanent injunctions to “prevent future violations” of these statutes and provide financial and “other relief.”
On August 15, 2019, Federal Trade Commission Headquarters located in Washington, DC. (Andrew Haller / via Bloomberg / Getty Images)
Uber allegedly failed to obtain consent from consumers for the subscription services of Uber One, promising savings while complicating the cancellation process despite claims that it could be “cancelled at any time.”
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In the lawsuit, the FTC mentioned a consumer who claimed he was enrolled in an Uber One subscription without his consent, stating he never signed up and was unaware of any charges.
The FTC has noted complaints from customers who experienced unexpected fees during the free trial period of Uber One prior to the scheduled payment date.
Uber’s headquarters in San Francisco on July 23, 2024. (David Paul Morris / via Bloomberg / Getty Images)
The Uber One subscription costs $9.99 per month ($99.99 for annual subscriptions). Members enjoy benefits like zero delivery fees for specific orders and the opportunity to earn Uber credits on rides.
The FTC claims that Uber’s cancellation process is “challenging, prolonged, and anything but simple,” alleging that subscribers must navigate through several screens before successfully canceling.
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Some Uber One subscribers reported that even after requesting a cancellation, they were charged in the next billing cycle and received delayed responses from customer service, according to the agency.
Concerns have been raised by agents over Uber’s claims that consumers can save $25 a month by enrolling, with the company reportedly not accounting for subscription costs in its statements.
An Uber spokesperson expressed disappointment over the FTC’s decision to move forward with this case, asserting confidence that the court will recognize that the sign-up and cancellation processes are transparent and compliant with the law.
“Uber does not enroll or charge users without their permission; cancellations can be processed through the app in under 20 seconds,” the spokesperson stated.
The image showcases the Uber app logo displayed on a user’s phone, captured in London on August 17, 2016. (Neil Hall/Illustrations/File Photos/Reuters Photos)
Tim Muris, an attorney from Sidley representing Uber in the case, expressed disappointment that the FTC filed this lawsuit without a comprehensive investigation, noting it was based on misunderstandings of both factual and legal nature.
Uber introduced its inaugural Uber One membership program in late 2021.
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In early February, when the firm announced its fourth quarter financial results, Uber stated its Uber One member count, available in almost 30 nations, reached 30 million.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| Uber | Uber Technologies Inc. | 74.88 | +1.96 |
+2.68% |
CEO Dara Khosrowshahi noted it was a successful month for Uber One, reporting an addition of 5 million members in the quarter, raising the total member count to 30 million and marking an increase year over year.
