FTC lawsuit accuses Uber of deceptive practices

The Federal Trade Commission accused the ride-share and delivery giant of engaging in deceptive billing and cancellation practices towards customers, according to the federal lawsuit filed on Monday. The FTC alleged that Uber falsely marketed memberships to Uber One, a subscription service promising frequent customers of Uber and Uber Eats savings and special deals.

Regulators accused Uber of enrolling users in the billed service without their consent and falsely promising that the subscription would save customers $25 per month. The company also charged users before the billing date, and prematurely charged customers who signed up for a free trial, according to the lawsuit. Additionally, Uber made it unreasonably difficult for them to cancel, according to FTC Chairman Andrew N. Ferguson. Americans are tired of getting signed up for unwanted subscriptions that are nearly impossible to cancel, Ferguson said.

Has Uber responded to the claims? Uber is disappointed in the lawsuit but confident that it will win in court, a company spokesperson told WORLD. Uber One’s sign-up and cancellation process is simple and clear, and customers are not signed up for any services without their consent, the spokesperson insisted. Users can cancel any services in the app in about 20 seconds or less, the spokesperson added.

Former FTC Commissioner Christine Wilson is serving as outside counsel for Uber in the case. She described the federal investigation into Uber as rushed with many unvetted allegations added at the last minute. It’s sad to see the FTC straying from the fairness that has so long defined the department, she said.

Dig deeper: Read my recent report on the FTC’s case and ongoing trial against Meta.