Uber faces scrutiny as FTC's lawsuit targets consumer protection and subscription service transparency
FTC Takes Legal Action Against Uber Over Alleged Subscription Misdeeds
FTC Takes Legal Action Against Uber Over Alleged Subscription Misdeeds
Federal Trade Commission accuses Uber of deceptive billing practices and non-consensual enrollment
The US Federal Trade Commission (FTC) has initiated a lawsuit against Uber, claiming that the ride-hailing and food delivery giant has been involved in dubious billing practices related to its subscription service. The FTC contends that Uber has charged users for its Uber One service—a subscription promising perks like no-fee delivery and reduced fares—without proper consent from customers and has created obstacles for those attempting to cancel the service.
"With the aim of standing up for consumers, the Trump-Vance FTC is taking action," stated FTC Chairman Andrew Ferguson, appointed by former President Trump. In contrast, an Uber spokesperson expressed disappointment regarding the lawsuit, asserting that the company does not engage in any deceptive practices.
Uber One, which became available in 2021, can be subscribed to at $9.99 per month or $96 annually. However, the FTC's complaint alleges that customers face excessive hurdles when trying to cancel their subscriptions. Specifically, some users reportedly must navigate up to 23 screens and perform as many as 32 actions just to terminate their subscriptions.
In response, Uber is contesting this portrayal. Spokesman Ryan Thornton claimed that the cancellation process has improved, allowing users to cancel at any time via the app, typically within 20 seconds. Previously, users had to contact customer support within a narrow 48-hour window prior to the next billing cycle to cancel.
Furthermore, the FTC's allegations include claims from consumers stating they were enrolled in Uber One without their knowledge. The complaint mentions a particular individual who reported being charged despite not holding an Uber account. In rebuttal, Uber maintained that it does not charge or sign up customers without their explicit consent.
This legal battle marks the FTC's inaugural lawsuit against a prominent US tech firm since President Trump began his second term in office in January. The commission is also currently embroiled in a long-standing trial against Meta regarding its alleged monopolistic practices after acquiring Instagram in 2012 and WhatsApp in 2014. Meta has characterized the FTC's lawsuit as misguided, citing prior approval of the acquisitions by the agency.
"With the aim of standing up for consumers, the Trump-Vance FTC is taking action," stated FTC Chairman Andrew Ferguson, appointed by former President Trump. In contrast, an Uber spokesperson expressed disappointment regarding the lawsuit, asserting that the company does not engage in any deceptive practices.
Uber One, which became available in 2021, can be subscribed to at $9.99 per month or $96 annually. However, the FTC's complaint alleges that customers face excessive hurdles when trying to cancel their subscriptions. Specifically, some users reportedly must navigate up to 23 screens and perform as many as 32 actions just to terminate their subscriptions.
In response, Uber is contesting this portrayal. Spokesman Ryan Thornton claimed that the cancellation process has improved, allowing users to cancel at any time via the app, typically within 20 seconds. Previously, users had to contact customer support within a narrow 48-hour window prior to the next billing cycle to cancel.
Furthermore, the FTC's allegations include claims from consumers stating they were enrolled in Uber One without their knowledge. The complaint mentions a particular individual who reported being charged despite not holding an Uber account. In rebuttal, Uber maintained that it does not charge or sign up customers without their explicit consent.
This legal battle marks the FTC's inaugural lawsuit against a prominent US tech firm since President Trump began his second term in office in January. The commission is also currently embroiled in a long-standing trial against Meta regarding its alleged monopolistic practices after acquiring Instagram in 2012 and WhatsApp in 2014. Meta has characterized the FTC's lawsuit as misguided, citing prior approval of the acquisitions by the agency.
