Business

FTC Sues Uber Over Uber One Subscription Practices and Customer Complaints

Uber in Legal Trouble Over Subscription Tactics

The U.S. Federal Trade Commission (FTC) has filed a major lawsuit against Uber Technologies Inc. over the company’s Uber One subscription service. According to the FTC, Uber used deceptive methods to get people to sign up for the paid service and then made it difficult for them to cancel.

This Uber One subscription lawsuit has quickly become a major headline. Many customers have reportedly been charged without their clear consent, while others faced numerous steps and hurdles just to cancel the service. The FTC is now taking strong action, and this case could have major implications for other tech companies with subscription services.

What Is the Uber One Subscription?

Uber One is a membership service that gives users perks like discounts on rides and free delivery on food orders through Uber Eats. It costs $9.99 per month or $96 per year. While the service is promoted as a money-saving membership, the FTC now claims that many users were enrolled without full understanding or approval.

The Uber One subscription is supposed to offer a better experience for frequent Uber and Uber Eats users. However, complaints from customers have revealed that many didn’t even know they were signed up until charges showed up on their credit card statements.

FTC’s Allegations: What Uber Is Being Accused Of

Unauthorized Enrollments in Uber One

The main accusation in this Uber One subscription lawsuit is that Uber enrolled people into its membership without properly informing them. In other words, many users were automatically signed up for Uber One, and fees were charged without their full knowledge.

According to the FTC, Uber used dark patterns — design tricks that push users toward a specific choice — to get people to subscribe. For example, when customers placed orders, they were shown promotional messages that looked like they were getting a one-time discount. However, clicking these buttons reportedly signed them up for the paid membership.

Some users who no longer had active Uber accounts were even billed for the service, according to the complaint. This shows how far the alleged misleading practices may have gone.

Misleading Claims About Savings

Another key part of the Uber One subscription lawsuit is the way Uber promoted the service. The company often advertised that members would save around $25 each month. But according to the FTC, these savings claims were misleading.

Why? Because the claimed savings did not take into account the actual cost of the membership. The FTC says this led customers to believe they would save more money than they actually did. In reality, the $9.99 monthly charge would eat into any potential savings, making the deal far less beneficial than it appeared.

Complicated and Frustrating Cancellation Process

Perhaps the most frustrating part of this case for consumers was the cancellation process. The FTC said that many users struggled to cancel their Uber One subscription. In fact, some were forced to go through up to 23 different screens just to cancel.

On top of that, customers who tried to cancel within 48 hours of their next billing date were often required to contact customer service. This added yet another step to what should have been a simple action.

The FTC claims this complicated process was designed to discourage people from canceling. This kind of tactic is common in “dark pattern” design — making things like cancellation or refund requests unnecessarily difficult in hopes the user will give up.

Uber’s Side of the Story

In response to the Uber One subscription lawsuit, Uber has strongly denied the allegations. A spokesperson said the company has always aimed to be transparent with its customers. They claim that the sign-up and cancellation processes follow the law and are now easier than ever.

According to Uber, users can now cancel the subscription directly from the app, and it takes less than 20 seconds. The company believes this lawsuit is based on outdated examples that don’t reflect the current system.

Still, the FTC isn’t convinced. They argue that Uber knowingly made these processes hard for years and only changed them after regulatory pressure. The case will now go through the legal system, and a judge will decide who’s in the right.

This Isn’t Uber’s First Run-In with the FTC

This isn’t the first time Uber has faced legal challenges from the FTC. In 2017, the company was accused of misleading drivers about how much they could earn. Uber settled that case by paying $20 million.

There was also a separate case involving data privacy, where Uber was criticized for how it handled user information. The FTC has been watching Uber closely ever since, and this new case adds to the company’s growing list of regulatory problems.

These repeat issues raise concerns about Uber’s overall practices and commitment to consumer protection. While the company has taken steps to improve, critics argue that it’s not enough.

Broader Impact: What This Means for Other Companies

This lawsuit isn’t just about Uber. It’s part of a larger push by the FTC to crack down on misleading subscription services across the internet. The agency has been warning companies about using dark patterns, and new rules have been introduced to make cancellations easier for users.

In fact, the FTC recently finalized a new “click-to-cancel” rule. This rule requires that companies make canceling a subscription just as easy as signing up for one. That means no more complicated steps, hidden buttons, or long wait times with customer service.

If the FTC wins this case against Uber, it could set a strong example for other tech and e-commerce companies. Businesses that rely on subscription models may need to rethink how they present their services and how they treat users who want to cancel.

What Consumers Can Learn from This

This Uber One subscription lawsuit is also a learning opportunity for everyday consumers. Here are some tips to avoid falling into similar traps:

  • Always read the fine print before accepting discounts or offers, especially if they involve ongoing services.
  • Check your email receipts and bank statements regularly to catch unwanted charges early.
  • Know your rights — in many countries, including the U.S., there are laws protecting consumers from hidden charges and hard-to-cancel subscriptions.
  • Speak up — if you feel misled or overcharged, you can file a complaint with organizations like the FTC.

Conclusion: A Case That Could Reshape Subscription Services

The Uber One subscription lawsuit has captured attention because it touches on issues many people face — surprise charges, tricky cancellations, and unclear agreements. The outcome of this case could influence not just how Uber operates, but also how hundreds of other companies design their websites, apps, and services.

For now, all eyes are on the courtroom. If the FTC succeeds in proving its case, it could be a major win for consumer rights. If Uber is cleared of wrongdoing, it will still face the challenge of rebuilding public trust.

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