According to the lawsuit, Uber engaged in a series of deceptive practices: it enrolled consumers without their consent; allegedly charged for Uber One subscriptions before free trial periods had ended; prevented some people from cancelling their subscriptions; and, ultimately, misled the public about the savings offered by Uber One.
On Monday, the Federal Trade Commission announced that it and a coalition of 22 attorneys general filed an amended lawsuit against Uber, claiming that the ride-share operator engaged in deceptive practices as part of its Uber One subscription program.
Washington, D.C. Attorney General Brain Schwalb, whose office is a named plaintiff in the complaint, said that Uber markets its Uber One subscription as a way for regular customers to save money on rides and grocery deliveries. However, Schwalb claims that Uber frequently took advantage of its userbase.
According to the lawsuit, Uber engaged in a series of deceptive practices: it enrolled consumers without their consent; allegedly charged for Uber One subscriptions before free trial periods had ended; prevented some people from cancelling their subscriptions; and, ultimately, misled the public about the savings offered by Uber One.
“Uber enrolled users into its Uber One subscription service without their consent and then made it nearly impossible for them to cancel,” Schwalb said in a statement. “Particularly when costs of living are higher than ever, no one should ever be stuck paying for a subscription they do not want. We are joining this lawsuit to stop Uber’s deceptive and illegal conduct and to ensure that the more than 100,000 DC residents who are paying for Uber One subscriptions have an easy way to cancel if they no longer wish to use the service.”
The lawsuit notes that Uber made it “extraordinarily difficult” to cancel subscriptions.
Customers wishing to cancel an Uber One subscription, for instance, are or were regularly required to “proceed through a minimum of 12 different actions and navigate a maze of at least 7 screens to ensure they would not be charged again. The complaint also alleges that Uber charged consumers before their billing date, including users whose free trials had not yet ended, and that Uber improperly used ‘negative option’ marketing tactics when it offered free trial subscriptions – a practice that automatically charges consumers if they do not cancel a free trial.”
Reuters notes that the Federal Trade Commission first filed its claims against Uber in April.
Aside from its Uber One-related allegations, the lawsuit also notes that many Uber One customers do not receive promised or alluded-to savings on their orders. Whereas Uber One advertises $0 delivery fees and up to $25 per month in savings, many consumers say their delivery fees never changed after paying for a subscription.
In response to the amended lawsuit, Uber seemed to characterize the claims as frivolous and exaggerative.
“The majority of cancellations take 20 seconds or less and can be done in the app anytime,” Uber said in a statement. “Prior to December 2024, as explained during sign-up, consumers within 48 hours of their next billing period had to contact Support in order to cancel.”
Sources
Attorney General Schwalb Joins Lawsuit Against Uber Over Deceptive Subscription Practices
US FTC, 21 states file amended complaint against Uber over subscription practices
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