The U.S. Federal Trade Commission (FTC) has initiated a lawsuit against Uber Technologies (NYSE:UBER), accusing the company of deceptive practices associated with its Uber One subscription service. Filed in San Francisco, the lawsuit alleges that Uber enrolled users without their consent, exaggerated savings claims, and complicated the cancellation process.

Overview of Uber One

• Subscription Cost: $9.99/month

• Benefits:

  • Reduced service fees

  • Exclusive discounts on both Uber Rides and Uber Eats

The FTC claims that Uber falsely advertised potential savings of up to $25 per month, which it argues misrepresents typical user savings.

FTC’s Claims Detailed

“Consumers are frustrated with being unknowingly enrolled in unwanted subscriptions that are difficult to cancel,”
— FTC Chairman Andrew Ferguson

• Manipulative Practices: The FTC accuses Uber of using dark patterns to mislead users into subscribing.

• Cancellation Difficulties: The process to unsubscribe is allegedly made intentionally complex.

• Unauthorized Charges: Customers reportedly faced automatic enrollments and charges without consent.

Uber Responds to Allegations

Uber spokesperson Noah Edwardsen refuted the claims:

“The signup and cancellation processes for Uber One are straightforward and adhere to legal guidelines.”

Edwardsen expressed disappointment over the lawsuit but remains confident the court will favor Uber.

FTC and Uber: A Long History