Background on the Legal Dispute
The United States Federal Trade Commission (FTC) has filed a lawsuit against Uber, accusing the ride-hailing and delivery company of engaging in deceptive practices involving its Uber One subscription service. According to the FTC, Uber allegedly charged customers without consent and created obstacles that made cancellation difficult.
Allegations Against Uber
In its complaint, the FTC states that Uber automatically enrolled users into its Uber One subscription and made the cancellation process unnecessarily complex. Consumers reportedly had to navigate up to 23 screens and perform 32 actions to cancel the subscription.
The Uber One plan, which launched in 2021, offers members benefits such as zero delivery fees and discounts on rides and food orders. The service is priced at $9.99 per month or $96 annually.
FTC’s Statement
FTC Chairman Andrew Ferguson, a Trump appointee, commented, “The Trump-Vance FTC is fighting back on behalf of the American people.” This case marks the agency’s first lawsuit against a major tech company under President Donald Trump’s second administration.
Uber’s Response
Uber has denied the allegations, expressing disappointment that the FTC opted to sue rather than resolve the issues cooperatively. Uber spokesman Ryan Thornton claimed that the cancellation process currently takes most users less than 20 seconds and can be done entirely within the app.
The company also refuted claims of unauthorized charges, asserting that it does not enroll or bill users without their explicit consent. Previously, users were required to contact support within 48 hours before the billing period to cancel, but Uber said that policy is no longer in effect.
Other Legal Actions and Industry Context
This lawsuit follows a broader pattern of regulatory scrutiny aimed at tech companies. The FTC’s case against Meta (formerly Facebook) is also underway, focusing on its acquisitions of Instagram and WhatsApp. Meta has countered that the agency approved the deals initially and is now unjustly challenging them retroactively.
The FTC’s move against Uber signals a tough stance on consumer protection and subscription-based billing, practices that have drawn criticism across the tech sector in recent years.
What It Means for Consumers
Consumers affected by automatic billing and complex cancellation mechanisms may feel vindicated by this lawsuit. The case could also lead to stricter regulations on how tech firms handle subscription services and billing transparency in the future.
Category: Technology News, Legal Affairs, Business
Tags: Uber, FTC, Uber One, subscription scams, tech lawsuit, consumer rights, deceptive billing, ride-hailing services, federal lawsuit, legal news
