The United States Federal Trade Commission (FTC) has initiated a lawsuit against the ride-hailing company Uber, alleging deceptive practices related to its subscription services. The legal action claims that Uber misled consumers and made canceling subscriptions unnecessarily challenging. The complaint, filed in a California court, seeks monetary relief and a permanent injunction among other remedies.
The FTC’s complaint argues that Uber made false or misleading claims regarding its subscription service, failed to provide straightforward mechanisms for customers to cancel, and charged individuals without obtaining proper consent. The commission emphasizes that consumers are increasingly frustrated with involuntary enrollment in subscriptions that are difficult to terminate.
FTC Chairman Andrew Ferguson expressed that the commission is actively working to protect American consumers from such practices. He stated that Uber’s alleged conduct involved deceiving consumers and obstructing their attempts to cancel subscriptions.
In response, Uber expressed disappointment with the FTC’s decision to proceed with the lawsuit. The company maintains confidence that the courts will affirm its position, stating that the sign-up and cancellation processes for Uber One are transparent, simple, and comply fully with legal requirements. Uber asserts that it does not enroll or bill consumers without consent and highlights that cancellations can now be executed within the app in under 20 seconds for most users.