Uber is facing legal action from U.S. regulators over its Uber One subscription service, accused of misleading users and making it difficult for them to cancel their subscriptions. The Federal Trade Commission (FTC) filed a lawsuit on Monday, claiming that Uber violated the Restore Online Shoppers’ Confidence Act, which aims to protect consumers from deceptive online sales tactics.
At the heart of the complaint is Uber’s promotional offering, which promised $25 in monthly savings to Uber One subscribers. The service, which typically costs about $10 per month, offers discounts on rides and Uber Eats deliveries. However, the FTC alleges that these savings were misleading as they did not apply to the subscription fees themselves. Instead, they were limited to discounts on Uber services, leaving many customers with less value than promised.
The lawsuit also highlights issues with the subscription cancellation process. Despite Uber’s assurances that users could “cancel anytime,” the FTC claims the process was unnecessarily difficult and complicated. According to FTC chair Andrew Ferguson, consumers are tired of being signed up for unwanted subscriptions that seem nearly impossible to cancel. “We’re alleging that Uber not only deceived consumers about their subscriptions, but also made it unreasonably difficult for customers to cancel,” Ferguson said in a statement.
Uber has denied the allegations, asserting that it never signed up users without their consent. The company also emphasized that most cancellations of Uber One subscriptions can be completed in under 20 seconds through the app. A company spokesperson expressed disappointment over the lawsuit, maintaining that Uber One’s sign-up and cancellation processes are transparent, simple, and fully comply with the law.
The case marks the latest in a series of challenges for tech companies facing scrutiny over consumer protection issues. As the lawsuit proceeds, it raises broader questions about the transparency of subscription-based services and the need for clearer, more accessible cancellation options for consumers
