Uber Sued by FTC for Alleged Unauthorized Charges, Tricky Cancellations

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Uber Sued by FTC for Alleged Unauthorized Charges, Tricky Cancellations
Uber Eats bag of a delivery man seen as people working for various food delivery companies gathered in Rennes in the Ille-et-Vilaine department of France on March 18 2025. NICOLAS HASSON-FAURE/Hans Lucas/AFP via Getty Images/Getty Images

The Federal Trade Commission (FTC) has filed a lawsuit against Uber, claiming the company charged customers for its Uber One subscription without permission and made canceling the service unnecessarily difficult.

A lawsuit filed Monday in the US District Court for the Northern District of California accuses Uber of violating both the FTC Act and the Restore Online Shoppers' Confidence Act.

The FTC says Uber misled users and trapped them in subscriptions they didn't want.

"Americans are tired of getting signed up for unwanted subscriptions that seem impossible to cancel," FTC Chair Andrew Ferguson said in a press release.

Uber One, a membership program offering perks like free delivery and discounts, costs $9.99 per month or $96 annually.

According to the FTC, the company advertised savings of $25 a month, but didn't subtract the membership fee when promoting those numbers, CNN said.

The agency also claims that some customers were billed before their free trial periods had ended, raising concerns about the company's billing practices.

Uber Denies Claims of Hard-to-Cancel Subscriptions

The complaint says canceling Uber One wasn't easy. Some users allegedly had to click through up to 23 screens and take 32 steps. Others were told to contact customer service without being given a way to do so. Some users said they were still charged after trying to cancel.

According to NC News, Uber has strongly denied the claims. Company spokesperson Noah Edwardsen said the lawsuit is "disappointing" but added that Uber is confident the courts will rule in its favor.

"Uber One's sign-up and cancellation processes are clear, simple, and follow the letter and spirit of the law," Edwardsen said. "Cancellations can now be done in-app and take most people 20 seconds or less."

The case represents the first major legal move against a technology company since Ferguson assumed leadership at the FTC.

He said the agency plans to keep a close eye on large tech companies, with Uber now joining a growing list of firms facing legal scrutiny.

In response to the legal action, Uber noted that two of its legal representatives are former FTC officials and criticized the investigation process as "rushed."

Despite the controversy, Uber One remains a key part of the company's business, with roughly 30 million subscribers reported at the end of last year.

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