FTC Sues Uber Over Alleged Deceptive Uber One Subscription Practices
The United States Federal Trade Commission (FTC) has initiated legal action against Uber Technologies, the prominent ride-hailing and food-delivery giant. The lawsuit centers on allegations that Uber has been enrolling consumers into its Uber One subscription service without their explicit consent, alongside propagating misleading information about the service’s benefits and cancellation process. Uber One, a subscription model priced at $9.99 per month, promises users various discounts across its popular ride-hailing and food-delivery applications.
Unfulfilled Promises and Cancellation Hurdles
According to the FTC’s complaint, Uber made several false claims to entice subscribers. The company allegedly promoted that users could save “up to $25 a month” through Uber One, a promise the FTC contends was often not delivered. Furthermore, the lawsuit highlights Uber’s deceptive practices regarding the ease of terminating the service. Despite advertising a “cancel anytime” policy, the FTC asserts that Uber deliberately made the cancellation process arduous. The filing details the significant obstacles users face, stating, “When customers try to cancel, Uber makes it extremely difficult. Users can be forced to navigate as many as 23 screens and take as many as 32 actions to cancel.” This labyrinthine process stands in stark contrast to the straightforward cancellation users are led to expect.
This legal challenge underscores a broader commitment from the FTC to safeguard consumer interests. The agency, which expressed confidence under the Trump administration in its pursuit of consumer rights for all Americans, aims to combat what it describes as widespread consumer frustration. Many individuals are increasingly weary of inadvertently being signed up for unwanted subscriptions and subsequently facing substantial hurdles when attempting to opt out. The FTC’s action against Uber serves as a clear message that such deceptive enrollment and retention tactics will be rigorously challenged to ensure fair practices in the digital marketplace.
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