Uber denies wrongdoing, insists its processes are legal, fast, and user-friendly
of ConsumerAffairsApril 22, 2025
Key takeaways:
- – Lawsuit accuses Uber of charging customers without consent and obscuring cancellation process
- – FTC says Uber misled users about savings and violated online consumer protection laws
- – Uber denies wrongdoing, insists its processes are legal, fast, and user-friendly
The Federal Trade Commission (FTC) has filed a lawsuit against Uber, alleging that the ride-hailing giant misled consumers about its Uber One subscription service, unlawfully charged users, and made it difficult to cancel memberships despite advertising them as easily terminable.
Allegations of hidden charges
Filed on Monday, the lawsuit claims that Uber enrolled customers in its Uber One subscription plan without clear consent, often charging users before their free trial periods ended. The FTC further alleges the company failed to honor its pledge that users could cancel “anytime” without penalty.
The complaint also accuses Uber of overstating savings from the servicepromising users $25 in monthly benefits without factoring in the cost of the subscription itself. According to the FTC, users often found that the savings never materialized as advertised.
Canceling Uber One not easy
Perhaps most damning are the FTCs claims about Ubers cancellation process. While the company promised easy opt-outs, the lawsuit states that some users had to navigate up to 23 screens and complete as many as 32 steps to cancel their subscription.
Complicating matters further, the option to cancel was allegedly removed from Uber’s app within 48 hours of the next billing date, forcing customers to contact supporta process plagued by long wait times and delayed responses, which, in some cases, led to users being charged before they could cancel.
These practices, the FTC says, violate the FTC Act and the Restore Online Shoppers Confidence Act, both of which mandate transparency, consumer consent, and simple cancellation procedures.
Uber pushes back
Uber has denied any wrongdoing. A company spokesperson said the Uber One sign-up and cancellation flows are clear, simple, and follow the letter and spirit of the law. the Wall Street Journalreported.The spokesperson added that most users can now cancel in-app in under 20 seconds.
The case now moves to federal court, where it could shape the future of how digital subscription services must disclose terms and enable cancellation.
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