FTC Sues Uber, Alleging Deceptive Practices

The Federal Trade Commission has filed a lawsuit against Uber, claiming the rideshare giant tricked consumers into unwanted subscriptions and made cancellation difficult despite promising a simple opt-out process.

Key Takeaways

The FTC alleges Uber charged consumers for Uber One subscriptions without consent and made cancellation deliberately difficult, requiring up to 23 screens and 32 actions to complete.
Uber denies all allegations, claiming its sign-up and cancellation processes are transparent and lawful, with most cancellations taking “about 20 seconds.”
The lawsuit claims Uber promised savings that didn’t account for the $9.99 monthly or $99.99 annual subscription cost.
Consumers reportedly faced unauthorized charges before free trial periods ended and encountered numerous obstacles when attempting to cancel.
This is the Trump administration’s first major tech company lawsuit, filed in the US District Court for Northern California.

FTC Targets Uber’s Subscription Practices

The Federal Trade Commission has initiated legal action against ride-sharing giant Uber, accusing the company of deceptive billing and cancellation practices related to its Uber One subscription service. The lawsuit, filed in the US District Court for the Northern District of California, alleges multiple violations of consumer protection laws, including unauthorized charges and deliberately complicated cancellation procedures. According to the complaint, Uber enrolled customers without explicit consent while promising a “cancel anytime” policy that proved exceedingly difficult to execute in practice.

The FTC claims the company violated both the FTC Act and the Restore Online Shoppers’ Confidence Act (ROSCA), which requires clear disclosure of terms before obtaining billing information and simple mechanisms for stopping recurring charges. Launched in late 2021, Uber One costs subscribers $9.99 monthly or $99.99 annually, offering benefits like zero delivery fees and Uber Credits. By early 2023, the service had attracted approximately 30 million members, representing nearly 60% year-over-year growth.

FTC takes action against Uber for deceptive billing and cancellation practices: https://t.co/RqVEPvn5TV /1

— FTC (@FTC) April 21, 2025

Consumer Complaints and Regulatory Concerns

The FTC’s lawsuit details an allegedly Byzantine cancellation process requiring customers to navigate up to 23 screens and perform 32 separate actions to terminate their subscription. Previously, the company reportedly required consumers to contact support within 48 hours of their next billing period to cancel, though this policy has since changed. Additional complaints include customers being charged before free trial periods expired and facing multiple obstacles when attempting to cancel their subscription, sometimes resulting in charges for another billing cycle after requesting cancellation.

“Americans are tired of getting signed up for unwanted subscriptions that seem impossible to cancel,” said FTC Chairman Andrew N. Ferguson. “The Trump-Vance FTC is fighting back on behalf of the American people. Today, we’re alleging that Uber not only deceived consumers about their subscriptions, but also made it unreasonably difficult for customers to cancel.”

The FTC’s complaint further alleges that Uber promised savings that did not account for the subscription cost and obscured important information about the service. In one particularly concerning claim, the agency cited a case where a consumer without an Uber account was charged for Uber One, raising questions about the company’s enrollment practices. The FTC is seeking a permanent injunction to prevent future violations along with monetary relief for affected consumers.

Uber Defends Its Practices

Uber has forcefully denied the allegations, maintaining that its sign-up and cancellation processes comply with all relevant laws. “Uber does not sign up or charge consumers without their consent, and cancellations can now be done anytime in-app and take most people about 20 seconds or less,” stated an Uber spokesperson in response to the lawsuit. The company insists that its processes are transparent and that it obtains proper authorization before charging customers for its subscription service.

The case represents the first major action against a US tech company since the second Trump administration began. It follows ongoing litigation against Meta, where the FTC alleges the company established a social media monopoly through acquisitions of Instagram and WhatsApp. Meta has countered that these acquisitions were previously approved by regulators. The Uber lawsuit highlights increased regulatory scrutiny of subscription-based services across the technology sector, particularly focusing on billing transparency and cancellation processes.