Uber Faces Legal Action from FTC Over Alleged Deceptive Practices

The Federal Trade Commission has filed a lawsuit against Uber, alleging the ride-sharing giant tricked consumers into unwanted Uber One subscriptions and created a frustrating maze of obstacles for those attempting to cancel the service.

Key Insights

The FTC claims Uber charged consumers for its Uber One subscription service without proper consent and made cancellation unnecessarily difficult despite advertising a “cancel anytime” policy.
According to the FTC, Uber’s cancellation process required navigating up to 23 screens and 32 actions, violating both the FTC Act and the Restore Online Shoppers’ Confidence Act.
Uber One, which costs $9.99 monthly or $99.99 annually, grew to 30 million members by early 2023, but the company now faces potential monetary penalties and a permanent injunction.
Uber has denied the allegations, stating that enrollments are consensual and that cancellations can now be completed in-app in about 20 seconds.

FTC Alleges Deceptive Subscription Practices

The Federal Trade Commission filed its lawsuit against Uber in the US District Court for the Northern District of California, focusing on alleged deceptive practices related to the company’s Uber One subscription service. According to the complaint, Uber not only charged consumers without proper consent but also employed tactics that made cancellation unreasonably difficult despite advertising an easy “cancel anytime” policy. The FTC further alleges that Uber promised savings that failed to account for the subscription’s cost and deliberately obscured key information about the service.

The subscription service, launched in late 2021, costs $9.99 monthly or $99.99 annually and offers benefits such as zero delivery fees and Uber Credits. By early 2023, Uber One had reached 30 million members, with CEO Dara Khosrowshahi reporting “a stellar few months” with nearly 60% year-over-year growth. However, the FTC claims this growth may have been fueled by deceptive enrollment practices and deliberate barriers to cancellation that trapped consumers into ongoing charges.

FTC takes action against Uber for deceptive billing and cancellation practices: https://t.co/RqVEPvn5TV /1

— FTC (@FTC) April 21, 2025

Cancellation Nightmare and Consumer Complaints

At the heart of the FTC’s case are allegations about Uber’s cancellation process, which the agency claims could require navigating up to 23 screens and completing 32 separate actions. The complaint states that even after successfully requesting cancellation, some subscribers found themselves charged for another billing cycle. Previously, cancellations reportedly required contacting customer support within 48 hours of the next billing period, creating additional hurdles for consumers seeking to end their subscriptions.

“Americans are tired of getting signed up for unwanted subscriptions that seem impossible to cancel. The Trump-Vance FTC is fighting back on behalf of the American people. Today, we’re alleging that Uber not only deceived consumers about their subscriptions, but also made it unreasonably difficult for customers to cancel,” FTC Chairman Andrew N. Ferguson said.

Consumer complaints received by the FTC include reports of being charged before the end of promised free trials and encountering numerous obstacles when attempting to cancel. The agency alleges instances of unauthorized enrollments, citing a case where a consumer was charged for Uber One despite not even having an Uber account. These practices, the FTC contends, violate both the FTC Act and the Restore Online Shoppers’ Confidence Act (ROSCA).

Uber’s Response and Potential Consequences

Uber has firmly denied the allegations, insisting that it “does not sign up or charge consumers without their consent” and that its sign-up and cancellation processes are both clear and lawful. In a statement, Uber spokesperson Ryan Thornton claimed that “cancellations can now be done anytime in-app and take most people about 20 seconds or less.” The company’s legal representative, Tim Muris, expressed disappointment that the FTC “chose to bring this case without a full investigation and to base its complaint on misunderstandings of both the facts and the law.”

With the lawsuit, the FTC is seeking a permanent injunction to prevent future violations, along with monetary relief and other remedies. This case represents the FTC’s first major action against a significant US technology company since the beginning of President Donald Trump’s second term. The outcome could have far-reaching implications for how subscription-based services operate, particularly regarding enrollment transparency and cancellation procedures. The ongoing litigation adds regulatory pressure to Uber as it continues to expand its subscription offerings.