The Federal Trade Commission filed a lawsuit Monday against Uber, alleging that the company wrongfully charged customers for its Uber One subscription service without obtaining proper consent. Additionally, the lawsuit claims Uber failed to deliver the advertised savings promised to subscribers, while also deliberately creating barriers to cancellation despite marketing the service as available for users to cancel anytime.
According to the complaint, Uber allegedly promised customers monthly savings of $25 through the subscription; however, the FTC asserts that the company neglected to clearly disclose the subscription’s price—up to $9.99 per month—thus misrepresenting the actual value provided. Federal regulators also accused Uber of employing deceptive tactics, such as placing critical subscription details in faint, gray text to obscure important information from users.
The FTC further contends Uber automatically billed customers who signed up for free trial periods even before their subscription officially activated. The agency claims Uber designed a deliberately complex cancellation procedure that forced customers to navigate through as many as 23 separate screens and complete up to 32 actions, often requiring them to interact repeatedly with prompts aimed at changing their minds about canceling. In some cases, users attempting to cancel within 48 hours of registration were directed to contact customer support, only to encounter unresponsive or inadequate assistance during the cancellation process, according to the lawsuit.
Uber has strongly denied these allegations. In a statement, the company accused the FTC of rushing into litigation based on inadequately investigated claims, characterizing the agency’s assertions as rooted in misunderstandings of the situation. Uber asserts that the processes for both signing up and canceling the Uber One subscription are clear, straightforward, and fully compliant with the law. The company added that cancellations can now be conducted within the app itself, taking approximately 20 seconds or less for most users.
Tim Muris, a former FTC chairman who previously represented Uber during the investigation, criticized the FTC for not conducting a thorough inquiry, while Christine Wilson, Uber’s current outside counsel, expressed disappointment in what she described as an incomplete and rushed investigation that introduced fresh, unvetted allegations at the last minute.
This lawsuit underscores the FTC’s continuing push against deceptive subscription billing practices, a regulatory focus strengthened during former FTC director Lina Khan’s tenure. Last autumn, the commission finalized its “click-to-cancel” regulation, scheduled to take effect May 14, which mandates that unsubscribing from services must be just as straightforward as signing up.
FTC Chairman Andrew Ferguson highlighted the issue in a statement, noting widespread public frustration over unauthorized subscriptions and intentionally complicated cancellation processes. Ferguson vowed that under his leadership, the FTC would actively defend consumers against these types of deceptive tactics.
The FTC is seeking a court order preventing Uber from engaging in the alleged behaviors and seeking monetary relief for affected consumers.
Uber’s subscription product, Uber One, experienced rapid growth, reaching a reported 30 million subscribers across 34 countries in 2024, growing about 60% year-over-year. Last year, Uber CEO Dara Khosrowshahi said that membership fees from Uber One alone were expected to exceed $1 billion in annual revenue worldwide.
