The Federal Trade Commission has expanded its lawsuit against Uber by adding 21 states and the District of Columbia, accusing the company of deceptive practices related to its Uber One subscription service. The allegations include charging customers without consent and making cancellations overly complicated. Uber strongly denies the claims, asserting that its processes are straightforward and compliant with the law.
The Federal Trade Commission (FTC) filed an amendment to its ongoing lawsuit against Uber in California District Court, originally initiated in April. This update incorporates 21 states, including Arizona, California, New York, and Pennsylvania, along with the District of Columbia, broadening the scope of the legal action.
According to the FTC, Uber engaged in misleading practices with its Uber One subscription, which costs $10 per month or $100 annually. The service promises benefits such as discounts, free delivery on Uber Eats orders, cash back, and other perks. However, the agency alleges that Uber charged consumers without their explicit consent, did not provide the advertised savings—like $0 delivery fees—and created barriers to cancellation, potentially requiring navigation through up to 23 screens and 32 actions.
In response, Uber emphasized the popularity of Uber One, noting that millions of customers opt in to save on rides and deliveries while accessing promotions. The company described its sign-up and cancellation procedures as "clear, simple," taking most users 20 seconds or less via the app. Uber argued that success of the lawsuit would disrupt standard operations across modern subscription services and vowed to defend itself vigorously in court.
This case unfolds amid growing regulatory scrutiny on subscription models. In 2024, there was significant backing for "click-to-cancel" rules to simplify unsubscribing from online services, though a federal appeals court struck down the national version earlier this year. California enforces its Automatic Renewal Law, mandating notifications before renewals and prohibiting automatic charges without consent. Similar regulations exist in states like New York, Virginia, and Illinois, highlighting a patchwork of consumer protections that the FTC aims to strengthen through this litigation.
