FTC Lawsuit Accuses Uber Of Bilking Users With Deceptive Billing And Cancellation Issues
Uber is in hot water yet again, this time for supposedly enrolling customers into its Uber One subscription service without their knowledge and/or with misguided promises of savings. The Federal Trade Commission (FTC) is taking the company to court over ambiguous billing practices plus making the cancellation process exceedingly challenging. Uber denies wrongdoing, but with a string of questionable and unlawful practices (as well as lawsuits) under its belt, the transportation company will have an uphill battery with this one, especially with the FTC declaring that "The Trump-Vance FTC is fighting back on behalf of the American people."
On Monday, the FTC sued ride-hailing and delivery company Uber for deceptive billing and cancellation practices, centered around the Uber One subscription service. According to the filing, Uber is claimed to have violated the FTC Act as well as Restore Online Shoppers' Confidence Act by automatically charging Uber One free trial users early without their permission. Users complained that they were charged for a service they never signed up for in the first place.
Moreover, despite promising a "cancel anytime" policy for subscribers (and/or victims) of auto-enroll, Uber is accused of making the process very difficult. Customers wishing to cancel the subscription service had to navigate seven screens that make no mention of "cancellation" until the fourth screen, according to the FTC complaint.
Even worse, those wishing to cancel within 48 hours of their billing date were forced to navigate as many as 23 screens before being able to proceed. In either case, customers were still required to contact customer service, but the service was so slow that some were billed again.
Uber One is Uber's membership program that costs $10 a month (or $96 if purchased annually). It promises customers benefits such as $0 delivery fees for Uber Eats, ride credits, and up to 10% and 5% off Uber Eats and Uber rides, respectively. As of 2024, the program currently has around 30 million subscribers.
In a response on CNBC, Uber spokesperson Noah Edwardsen asserts that the company has done no wrong, saying that "Uber One’s sign-up and cancellation processes are clear, simple, and follow the letter and spirit of the law." Edwardsen also states that "Uber does not sign up or charge consumers without their consent, and cancellations can now be done anytime in-app and take most people 20 seconds or less."
