FTC takes legal action against Uber for allegedly misleading Uber One subscribers

FTC sues Uber over ‘deceptive’ Uber One subscriptions
The government reports that some individuals had to go through 23 screens just to cancel their subscription. Struggling to terminate your Uber One membership? You’re not the only one, as highlighted by the U.S. government. On Monday, the Federal Trade Commission initiated legal action against the rideshare and delivery giant Uber, claiming the company engaged in “deceptive billing and cancellation practices.” These accusations from the FTC pertain specifically to Uber’s premium subscription service, Uber One.
“I checked my credit card statement and discovered that Uber Eats had been billing me $9.99 for an Uber One account for the last 8 months. I never signed up for this service,” states a typical comment from customers referenced in the lawsuit. Another complaint mentions, “I don’t have an UBER account and NEVER have, yet I’m being charged a recurring monthly fee of $9.99 for UBER ONE. I have no idea how they obtained my debit card information.” This image from the Uber app was included in the FTC’s documentation.
Why did the FTC target Uber with the new suit?
Uber promoted Uber One as a premium subscription service priced at $9.99 per month, offering customers exclusive perks like discounts on rides and deliveries. Nevertheless, the FTC claims that Uber misrepresented the nature of those savings. “Consumers are fed up with being enrolled in unwanted subscriptions that are nearly impossible to cancel,” stated FTC Chairman Andrew N. Ferguson. “Today, we assert that Uber not only misled consumers regarding their subscriptions but also made it excessively challenging for customers to terminate them.”
For instance, Uber claimed that Uber One members could save $25 monthly. The FTC contests this, pointing out that the lawsuit reveals the company failed to account for the $9.99 membership fee when promoting these alleged savings. “These assertions are misleading,” the government’s lawsuit claims. “Many customers do not actually enjoy a $25 monthly savings through Uber One… Uber’s savings assertion presupposes that the subscription is cost-free; the claimed savings do not consider any expenses.”
However, the issues with Uber One extended beyond deceptive advertising. The lawsuit indicated that, in addition to the $25 savings, Uber claimed users could cancel their Uber One membership “at any time” without “any extra fees.” Yet, the FTC noted that Uber frequently charged consumers even before the free trial concluded. Moreover, terminating the subscription proved to be more complicated than advertised.
Easy to sign up, incredibly hard to cancel
The lawsuit claims that Uber employs misleading tactics referred to as “dark patterns” to first prompt users to enroll and subsequently deter them from terminating their Uber One subscriptions. The FTC highlights that users can sign up with just a few clicks, whereas cancelling necessitates as many as 32 actions. According to the lawsuit, buttons in the app that direct users to “Start saving” or “Try for free” automatically enroll them in the trial. In one instance, users faced a choice between “Start saving” and “Cancel.” The government’s complaint states, “Once consumers click ‘Start saving,’ they are instantly enrolled in Uber One and will incur charges monthly or yearly for a subscription. The only other option is to ‘Cancel.’ It remains unclear what tapping that button would cancel at this stage — it might be the delivery or ride they are attempting to book; they have not signed up for Uber One and therefore could not cancel it.”
Furthermore, when customers genuinely attempted to terminate their subscriptions, the FTC asserts that “Uber makes it extremely difficult.” Users were said to be “forced to navigate” through a complex series of steps to cancel their Uber One plan. The FTC indicates that the cancellation procedure could span over 23 different screens, requiring users to complete up to 32 various actions merely to cancel. Moreover, as users approached the end of their current subscription, Uber allegedly made it increasingly challenging to cancel. “Uber can demand that they provide a reason for cancelling, encourage them to pause their membership, or, if those attempts fail, present them with offers to remain,” the FTC explains. Some customers found themselves needing to reach out to Uber customer support to cancel, yet were not given a clear way to contact the company. Additionally, many users reported being charged for the subscription while attempting to cancel, according to the government.
Uber’s alleged violations and the company’s official response
The FTC has filed five charges against Uber under Section 5 of the FTC Act and the Restore Online Shoppers’ Confidence Act (ROSCA), citing issues such as misrepresentation and unauthorized charges. In a statement provided to Mashable, Uber denies any allegations of misconduct. “We are disheartened that the FTC has decided to proceed with this case, but we believe that the courts will recognize what we already understand: the sign-up and cancellation procedures for Uber One are transparent, straightforward, and comply with legal standards,” an Uber representative stated. “Uber does not enroll or bill consumers without their consent, and cancellations can now be completed within the app in 20 seconds or less.”
Uber noted that previously, customers had to reach out to the company to cancel their Uber One subscription if they were within 48 hours of their renewal date. However, the company has revised this policy, allowing users to cancel their subscriptions directly through the app at any time.
