The Federal Trade Commission (FTC) has taken legal action against Uber, alleging that the rideshare and delivery service engaged in deceptive billing and cancellation practices related to its Uber One subscription service. The lawsuit claims that Uber charged consumers without their consent and failed to deliver the promised savings, while also complicating the cancellation process.

FTC Chairman Andrew N. Ferguson emphasized the agency's commitment to protecting consumers from unwanted subscriptions that are hard to cancel. The complaint outlines several deceptive practices, including misleading promises of savings and obscured information about subscription costs. For instance, customers are promised savings of $25 a month, but this figure does not account for the subscription fee of up to $9.99 per month.

Moreover, the complaint states that many consumers were enrolled in the service without their consent, with some reporting charges despite not having an Uber account. The FTC also highlights that Uber charged customers before the end of free trial periods, contradicting its claims of allowing free cancellations during trials.

When attempting to cancel their subscriptions, users reportedly faced significant hurdles, needing to navigate through numerous screens and actions. Some customers were even required to provide reasons for their cancellation or were presented with offers to stay. In some cases, users were told to contact customer support to cancel but found no means to do so, leading to further complications.

The FTC alleges that these practices violate the FTC Act and the Restore Online Shoppers’ Confidence Act (ROSCA), which mandates clear disclosure of service terms, obtaining consumer consent before charges, and providing an easy cancellation process for recurring subscriptions. The case has been filed in the U.S. District Court for the Northern District of California, with a Commission vote of 2-0-1 authorizing the complaint.