FTC Targets Uber Over Billing and Cancellation Practices

The Federal Trade Commission has filed a lawsuit against Uber, alleging deceptive practices involving its Uber One subscription service, sparking interest from concerned consumers and watchdogs alike.

Quick Takes

The FTC filed a lawsuit against Uber for deceptive billing and cancellation practices related to its Uber One subscription service.
Uber allegedly charged consumers without their consent and made it difficult to cancel the service.
The FTC claims Uber promised savings that did not account for the subscription cost, obscuring important information.
The lawsuit was filed in the US District Court for the Northern District of California.
The FTC is seeking a permanent injunction and monetary relief to prevent future violations.

FTC’s Allegations Against Uber

The Federal Trade Commission has taken legal action against Uber, alleging deceptive billing and cancellation practices involving its Uber One subscription service. The FTC’s complaint accuses Uber of enrolling users without obtaining their full consent and making it challenging to cancel the subscription. Despite a supposed “cancel anytime” policy, consumers allegedly encountered obstacles, with some being charged before the end of a free trial period.

The allegations further include claims that Uber’s promotional material failed to account for the cost of the subscription, misleading users about potential savings. The FTC contends that these practices violate the FTC Act and the Restore Online Shoppers’ Confidence Act (ROSCA). The lawsuit is filed in the US District Court for the Northern District of California.

FTC takes action against Uber for deceptive billing and cancellation practices: https://t.co/RqVEPvn5TV /1

— FTC (@FTC) April 21, 2025

Uber’s Response to the Allegations

Uber, on its part, has contested the FTC’s claims. A spokesperson stated that the company’s sign-up and cancellation processes are clear and lawful, emphasizing that consumers can cancel their subscription swiftly in-app. “Uber does not sign up or charge consumers without their consent, and cancellations can now be done anytime in-app and take most people about 20 seconds or less,” according to an Uber spokesman.

Tim Muris, a legal representative for Uber, expressed disappointment with the FTC’s decision to proceed. He criticized the agency, accusing it of not conducting a full investigation and arguing that the complaint is based on misunderstandings of both facts and the law.

Impact and Broader Context

This legal battle marks the FTC’s first lawsuit against a major US tech company since the beginning of Trump’s second term. It is part of a broader effort by the FTC, led by Chairman Andrew Ferguson, a Trump appointee, to protect consumers. FTC Chairman Andrew N. Ferguson remarked, “Americans are tired of getting signed up for unwanted subscriptions that seem impossible to cancel.” The FTC’s case against Meta for alleged monopolistic practices is also ongoing.

The outcome of this lawsuit could have significant implications for tech companies’ handling of subscription services. As the case unfolds, Uber’s practices and the clarity of its communication with consumers will likely come under intense scrutiny from both the court and the public.