The United States Federal Trade Commission has filed a lawsuit against Uber Technologies Inc., accusing the ride-hailing giant of enrolling customers into its Uber One subscription service without their consent and misleading users about potential savings and the ease of cancellation.
Filed Monday in a federal court in San Francisco, the suit claims that Uber misrepresented the benefits of Uber One, a $9.99-per-month membership that offers discounts on rides and food deliveries. According to the FTC, the company exaggerated potential savings—allegedly claiming users would save around $25 monthly—and obscured the cancellation process.
“Americans are tired of getting signed up for unwanted subscriptions that seem impossible to cancel,” said FTC Chairman Andrew Ferguson. “The Trump-Vance FTC is fighting back on behalf of the American people.”
Uber has denied the allegations. Company spokesperson Noah Edwardsen said, “We are disappointed that the FTC chose to move forward with this action, but are confident that the courts will agree with what we already know: Uber One’s sign-up and cancellation processes are clear, simple, and follow the letter and spirit of the law.”
This is not the first time Uber has come under regulatory scrutiny. In 2017, the company settled claims from the FTC over misleading statements about privacy and data protection.
A year later, it paid $20 million to resolve accusations that it inflated earnings projections to lure drivers.
In 2022, Uber avoided criminal charges by admitting to failing to disclose a massive 2016 data breach affecting 57 million users and drivers.
