Federal Trade Commission Sues Uber Over Deceptive Billing and Cancellation Practices
The Federal Trade Commission (FTC) has filed a lawsuit against ride-sharing and delivery giant Uber, accusing the company of engaging in deceptive billing and cancellation practices related to its optional subscription service, Uber One.
The complaint, filed in federal court in California, alleges that Uber engaged in unfair and deceptive business practices by charging users for its optional subscription service without their permission and making it difficult to cancel the service. The FTC claims that customers were misled about the savings they would receive from signing up for the Uber One subscription.
Uber One Subscription Practices at Issue
The complaint centers around Uber's practices with its optional subscription service, which promises customers a monthly discount of $25. However, the FTC alleges that Uber fails to take into account the cost of the $9.99 monthly subscription when promising savings.
Furthermore, the FTC claims that Uber obscures material information about the subscriptions, making it difficult for users to understand what they are signing up for and how much it will cost them.
Consumers Express Frustration with Cancellation Process
The complaint includes anecdotes from consumers who expressed frustration and confusion when trying to cancel their Uber One subscriptions. The FTC alleges that some users were forced to navigate up to 23 screens in the Uber app before they could successfully cancel their subscription.
One consumer reported being stuck in a "circular loop" when trying to cancel, which made it impossible to navigate and ultimately resulted in the consumer being charged for the service despite attempting to cancel it.
Uber Responds to Lawsuit
A spokesperson for Uber responded to the lawsuit, stating that the company is "disappointed" with the suit but "confident" that the courts will rule in its favor. The spokesperson claimed that Uber's sign-up and cancellation processes are clear, simple, and follow the letter and spirit of the law.
The spokesperson also stated that cancellations can now be done anytime in-app and take most people 20 seconds or less.
Former FTC Commissioner Defends Uber
A former FTC commissioner, Christine Wilson, defended Uber against the lawsuit. She claimed that the commission's vote to file the complaint was rushed and included new and unvetted allegations at the last minute.
Wilson stated that it is disappointing to see the FTC stray from its traditional rigor and fairness in handling this enforcement action.
Lawsuit Filed Amid Recent Changes at FTC
The lawsuit was filed amidst recent changes at the FTC. The commission's two Democratic commissioners were fired by President Trump last month, leaving a 2-1 split on the commission. Commissioner Mark Meador was sworn into his position earlier this month and recused himself from the vote to file the complaint.
FTC Commissioners' Recusal
- The FTC's vote to file the complaint against Uber was a rare occurrence, with the commission voting 2-0-1 in favor of filing the suit.
- Commissioner Mark Meador recused himself from the vote due to his recent swearing-in as commissioner and the fact that he had not yet been briefed on the matter.